actually some of the preferences are actually transferred… but many of them (including basic ones) are not… (especially favorite nodes…) REALLY makes no sense!
You are refering to this Unreal Engine Issues and Bug Tracker (UE-62044)? I did do a PR that resolves the issue however Epic can’t handle the fallout from it, see https://github.com/EpicGames/UnrealEngine/pull/4898 . It would need to be done this way or they would have to code a new way to handle backwards compatibility from settings INI files which would cause more code changes and be a cause for a lot more issues down the line (in my opinion).