The environment was made by 魔灯.
3D Environment Artist 魔灯 unveiled a beautiful stylized scene with strong Ghibli vibes. The project depicts a picturesque medieval-looking town and features tons of small environmental details like rocks, trees, bushes, roads, fences, and bodies of water that increase the scene's overall immersivity. According to the artist, the environment was made using ZBrush, Substance 3D Painter/Designer, SpeedTree, and Unreal Engine.
And here are the assets and materials that were made for the project: