Hot Reload does not work if a project and the Engine that project is associated with are placed next to each other in the same root folder that shares the same name as the project. During the Hot Reload, the Engine appears to be looking for the .uproject file one folder higher in the file path than it is actually located.
This only appears to be an issue if both the project and the Engine are in the same root folder and the root folder and project share the same name. If either the Engine is located somewhere else, or the root folder and project names are different, then the Hot Reload completes successfully.
Yes. A Hot Reload in this situation in 4.19.2 completes successfully.
The Hot Reload process fails with the following error: ERROR: System.IO.FileNotFoundException: Could not find file 'D:\TESTHotReload\TESTHotReload.uproject'.
The Hot Reload process completes successfully.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-68148 in the post.