It would be insane to even try to compete with Unreal, an engine focused on AAA games that's been around for decades, with a large full-time staff. No open-source project will ever match them, because it's a moving target.
Fortunately Unreal Engine is a poor choice for many types of games, and Godot is doing a great job carving out its niche with 2D games and simpler 3D games. There's still a big market for 2D games, and surprisingly there aren't a ton of engines which do a good job supporting them. Godot is easily among the best.
I mean the problem is 2d game tools isn't getting loves for some time. Paper2d which is the main component of UE for 2d games still haven't updated with UE 5 last time I checked. So it misses a lot of feature parity.
Fortunately Unreal Engine is a poor choice for many types of games, and Godot is doing a great job carving out its niche with 2D games and simpler 3D games. There's still a big market for 2D games, and surprisingly there aren't a ton of engines which do a good job supporting them. Godot is easily among the best.