I dont know why devs lock their games to use software Lumen when they can give the players the option to use hardware lumen with just a flip of a switch on their end.
This game's software lumen is really bad. Noisy and low detail reflections, flickering shadows and not so good GI.
If you have powerful enough hardware, you can use this command to enable hardware lumen. Note this will come at a FPS cost. I recommend using FG to make up for the loss FPS.

Go to C:\Users\ YOUR USERNAME \AppData\Local\Habitat\Saved\Config\Windows

Then make a new text document and paste the following code

[SystemSettings]

r.Lumen.HardwareRayTracing=1
r.Lumen.Reflections.HardwareRayTracing=1
r.Lumen.ScreenProbeGather.HardwareRayTracing=1
r.LumenScene.DirectLighting.HardwareRayTracing=1
r.ContactShadows.OverrideLengthInWS=1
r.ContactShadows.OverrideLength=25
r.ContactShadows.OverrideShadowCastingIntensity=1
r.ContactShadows.OverrideNonShadowCastingIntensity=1
r.SkylightIntensityMultiplier=0.65
r.ShadowQuality=5
r.Shadow.Virtual.ForceOnlyVirtualShadowMaps=0
r.Shadow.Virtual.ResolutionLodBiasLocal=-2.0
r.Shadow.Virtual.ResolutionLodBiasLocalMoving=-2.0
r.Shadow.Virtual.ResolutionLodBiasDirectional=-1.0
r.Shadow.Virtual.smrt.samplesperraylocal=2
r.Shadow.Virtual.smrt.samplesperrayhair=2
r.Shadow.Virtual.smrt.samplesperraydirectional=2
r.Shadow.Virtual.smrt.texelditherscalelocal=4
r.Shadow.Virtual.SMRT.TexelDitherScaleDirectional=6
r.Shadow.Virtual.ScreenRayLength=0.02
r.Shadow.InsetDownscaleFactor=0
r.Shadow.PerObjectDirectionalDepthBias=0.5
r.Shadow.PerObjectDirectionalSlopeDepthBias=3
r.Shadow.PerObjectSpotLightDepthBias=0.5
r.Shadow.PerObjectSpotLightSlopeDepthBias=3
r.Shadow.ShadowMaxSlopeScaleDepthBias=3
r.Shadow.SpotLightDepthBias=0.5
r.lumen.tracemeshsdfs=1
r.Lumen.TraceMeshSDFs.TraceDistance=240
r.Lumen.ScreenTracingSource=1
r.Lumen.DiffuseIndirect.SurfaceBias=8
r.LumenScene.DirectLighting.UpdateFactor=8
r.LumenScene.Radiosity.UpdateFactor=4
r.LumenScene.Radiosity.MaxRayIntensity=99
r.Lumen.ScreenProbeGather.TraceMeshSDFs=0
r.Lumen.ScreenProbeGather.DownsampleFactor=12
r.Lumen.ScreenProbeGather.MaxRayIntensity=1
r.Lumen.ScreenProbeGather.MaxRoughnessToEvaluateRoughSpecular=2 r.Lumen.ScreenProbeGather.MaxRoughnessToEvaluateRoughSpecularForFoliage=1 r.Lumen.ScreenProbeGather.ScreenTraces.HZBTraversal.SkipHairHits=0 r.Lumen.ScreenProbeGather.ScreenTraces.HZBTraversal.SkipFoliageHits=0 r.Lumen.ScreenProbeGather.ScreenTraces.HZBTraversal.FullResDepth=1 r.Lumen.ScreenProbeGather.ScreenTraces.HZBTraversal.MaxIterations=30 r.Lumen.ScreenProbeGather.ScreenTraces.HZBTraversal.RelativeDepthThickness=0.2 r.Lumen.ScreenProbeGather.ShortRangeAO.ScreenSpace.SlopeCompareToleranceScale=4.0 r.Lumen.ScreenProbeGather.ShortRangeAO.ScreenSpace.FoliageOcclusionStrength=1.0 r.Lumen.ScreenProbeGather.ShortRangeAO.MaxMultibounceAlbedo=0.8 r.Lumen.ScreenProbeGather.ShortRangeAO.ApplyDuringIntegration=0 r.Lumen.ScreenProbeGather.RadianceCache.ProbeResolution=64
r.Lumen.ScreenProbeGather.RoughSpecularSamplingMode=1
r.Lumen.ScreenProbeGather.DiffuseIntegralMethod=0
r.Lumen.ScreenProbeGather.Temporal.MaxFramesAccumulated=4
r.Lumen.Reflections.RadianceCache=1
r.Lumen.Reflections.GGXSamplingBias=0.7
r.Lumen.Reflections.HierarchicalScreenTraces.MaxIterations=96
r.Lumen.Reflections.SmoothBias=0.76
r.Lumen.Reflections.MaxRoughnessToTrace=0.63
r.Lumen.Reflections.Temporal.MaxFramesAccumulated=0
r.Lumen.Reflections.DownsampleFactor=0
r.Lumen.Reflections.HiResSurface=1
r.Lumen.Reflections.SampleSceneColorAtHit=1
r.Lumen.Reflections.SpecularScale=0.8
r.Lumen.TranslucencyVolume.MaxRayIntensity=0.62
r.Lumen.TranslucencyReflections.FrontLayer.Enable=1
r.Lumen.TranslucencyReflections.FrontLayer.Allow=1
r.SSR.Quality=4
r.SSR.MaxRoughness=1
r.SSR.Stencil=1
r.VolumetricFog.GridPixelSize=7
r.VolumetricFog.GridSizeZ=192
r.VolumetricFog.UpsampleJitterMultiplier=0.55
r.VolumetricCloud.EnableLocalLightsSampling=1
r.VolumetricRenderTarget.Mode=3
r.SSS.Scale=3.5
r.SSS.SampleSet=2
r.SSS.Quality=1
r.SSS.HalfRes=0
r.SSS.Filter=1
r.Water.SingleLayerWater.SupportCloudShadow=1
r.ParallelShadowsNonWholeScene=1

Then save the text file (File>Save as) Engine.ini (Make sure you save the file as .ini otherwise it wont work.
Right click on the newly created file and go to properties and select read only and apply.

Done, Launch the game.

PS: you can use this same method to enable hardware lumen on any UE5 game like Silent hill f, Fort Solice etc.