why does the new version of UE5 have such a terrible interface

The other replies didn’t seem to get what your complaint was really about. I think I do, at least. The tiny text-less grey buttons that don’t give you much of any idea of what they’re for are certainly an annoying “improvement” upon the original. Especially when the purpose of doing this new design is to save screen space, yet they wasted so much of the top toolbar space by having a bunch of empty grey space to the right of “Platforms” and left of “Settings”. They could have at LEAST still had those old buttons that had text under them telling you what they were for, but maybe just had the icon a bit smaller (still having the text though), as there’s LOTS of room for it.

In my case, this button here was a major thorn in my side for the longest time because it has no text and it’s mouse-over text isn’t very clear on what it’s for:
tiny button

Turns out, that’s the old “Blueprints” button they used to have, that UE5’s documentation STILL to this day shows (even though it’s nothing like that now):

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