The project was made by Zach Helm for Technically A Challenge.
Check out these destructible modular walls created by Game Developer Zach Helm for Technically A Challenge, a challenge that tasks Technical Artists to create something beautiful related to a certain topic.
According to the author, the working process started in Unity but eventually ended up in Unreal Engine 5 thanks to the latter's Chaos, a high-performance physics and destruction system, and the Niagara VFX System, the primary tool to do visual effects inside UE5.
"I've been mulling over the idea of destructible wood-frame + drywall for awhile, but this challenge was a great excuse to try it out," noted the author.