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Source: https://twitter.com/nwinteractive/status/1638630877646266374?cxt=HHwWjIC9wb6Gy70tAAAA
They never promised an upgrade to UE5, just native next-gen versions for console releases.
We know that the next game is not an Insurgency title and will be quite different from anything they’ve done before. They’ve been working on it since 2019 & right now most of NWI’s resources are going into it, with Sandstorm’s development mostly being outsourced.
As for UE5, maybe (?), though considering the project was started on UE4 it’s quite likely they haven’t ported it, the tweet you linked includes many dev studios which use UE4 for upcoming releases, NWI could very well be one of them.
It is 9 / 10 because there aren't any other games to compare this to.