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DonFerrari said:

Perhaps they are making something like ND done, make the remake with the engine they are using for their upcoming game to both test out/improve their experience and also get some money rolling to finance the other game.

Yeah it could very well be a test situation. Now that you mention engine, I'm honestly shocked that this is UE5 when the original was using Decima. 

I think the test part is correct, but perhaps they stuck with an engine they knew more of (UE) rather than spending more time (and the effort of Guerrilla engineers) starting with Decima.

So, I hope that this is a successful release, and that Balistic Moon move over to Decima for the own original release.

Since they're already doing Until Dawn, I'd like them to do a remake of The Inpatient as a sort of First Light/ Lost Legacy esque smaller release (or DLC) since that is a prequel to the events of UD. That could be a cool addition since it would need a lot of fleshing out from the original VR version.