I am having the same or atleast similar problem. Used to be able to launch and run the game but after recently redownloading it i get the error "operating system out is too old" with a "DX12SM6 required". i have a 1050ti so i have dx12 capability and the os version from what i can tell has nothing to do with that. I am currently using windows 10 1903 or 1909 as there are no up to date drivers for my raid array hardware.

One guy here https://gtm.steamproxy.vip/app/2506820/discussions/0/4340977379961782599/ had the same issue with another UE5 game, said it was working fine under w10 22h2, and got the problem after downgrading to v1809, so see if you can find a way to update.

Otherwise the commonly suggested solution is to play in dx11 mode. I've tried, performance was worse, some UI screens had black backgrounds (like the end mission stats where the recovery history bars were not visible), and I noticed some artefacts on trees.
But if you really wanna go that route, you need a 3rd party tool: SteamEdit. With Steam closed, select the game in SteamEdit->edit launch->replace the default "-dx12" argument by "-dx11". Ok, save, and play.

No, simply adding "-dx11" to the launch options within Steam won't work, it'll conflict with the dev-set "-dx12" option.

Originally posted by Long-comment-san:

Weird part is I have no clue what that C\Unreal.. link is, I'm either blind or there is no folder "unreal 5.." at my C:

The message is for the dev, it tells HIM which file & line of his source code caused the crash. It tells YOU in which folder the dev had his source files when he built the exe.

where unreal 5 is. traces of it can be found all over. like in the Epic Games folder. dont know what is in there but everytime i run a game with UE5 on it that folder comes back. most likely a connection. another one is the U01 folder and the unrealengine folder. There are about 10 others that keep reappearing each time i reinstall UE5. None of this information is useful I know I am just saying unreal installs itself everywhere on your computer.

in the steam launch options. DX11 is normally the im out of choices option. I am having to use it on other games so i know it well. try -d3d11 command. see if that works any better for you. also try -sm5. that will force the shade to 5 instead of 6. some people have luck with that instead of using dx11. use all cores command (i dont want to list it because i dont remember the wording off the top of my head) I am told helps some time as well. also the start in windows mode im told is less stressful on the computer and games can run on it better. there are other tools you can try. dx11 is when all else fails and you really want to play the game still.

I am also going to say update your windows and your drivers. it could be they are just out of date. I know you have looked but there might be a update that came out today.