You're correct. I wouldn't consider the lighting in this game to be true to life, its more of a clever play on colors, gradients and indeed post-processing. A drawback of this approach is that it doesn't look good in every scenario. This picture is a good angle, but from many other angles the game will look off. For example, real-time shadows are not rendered beyond 200m and the game does not have baked shadowmaps which leads to abrupt cutoffs.
The main reason I haven't tried out UE5 so far is that I'm not good at visual scripting nor C++. That said, Nanite looks incredible