Can't run Game target in Unreal Engine project on MacOS. "Failed to open descriptor file ../../../../Engines/UE_5.4/../../"

Problem

Unreal Engine project can be launched with Editor target fine, but if trying to launch Game target, the error occurs.

Error on Mac:

LogProjectManager: Error: Failed to open descriptor file ../../../../Engines/UE_5.4/../../UEPrj/fps532_b_cpp/fps532_b_cpp.uproject
LogGenericPlatformMisc: Warning: MessageBox: Message : Failed to open descriptor file ../../../../Engines/UE_5.4/../../UEPrj/fps532_b_cpp/fps532_b_cpp.uproject
2024-07-25 14:49:07.404 fps532_b_cpp[1972:18307158] [UE] MessageBox: Message : Failed to open descriptor file ../../../../Engines/UE_5.4/../../UEPrj/fps532_b_cpp/fps532_b_cpp.uproject
LogInit: Warning: Could not find a valid project file, the engine will exit now.

Cause

Project should be packaged from Unreal Editor at least once, so that it can be launched with Game target.

Resolution

Launch a project in Unreal Editor and package it for the current platform: