Excellent question, OP!! And a resounding 'yes' from me.
Every major problem with BG3 can be traced to the limitations of Larian's home-brew engine: cannot pause the game during real-time exploration; no day-night cycle; toilet-chain party movement; inability to do reactions properly; etc. Everything is because of the Larian engine's limitations. But Larian fans love it because "cool graphics," supposedly.
UE5 has no significant limits on what you can do with it. And it's graphics fidelity blows every other engine away, including Larian's by a wide margin. It can do first person, third person, or iso; RT, RTwP, or TB; single-player, co-op, or multiplayer; solo play or party-based. All of these things and more are possible with UE5, and that's why pretty much all RPG developers large and small are flocking to it - except Larian.
