In this use case, installing Unreal Engine might resolve the issue. However, it's not a requirement to have Unreal Engine / Unreal Editor installed. We have a documentation page that mentions some of the system requirements: https://www.mathworks.com/help/uav/ug/3d-simulation-environment-requirements-and-limitations.html
What usually happens is that the first time that you run an Unreal simulation, it will check if your system has all the prerequisites installed (Visual C++ runtime, DirectX). If not, there should be a popup that lets the user install those prerequisites before running the simulation. You can refer to the documentation page where it clearly states that "If this software is not already installed on your machine and you try to simulate in the 3D environment, UAV Toolbox prompts you to install it. Once you install the software, you must restart the simulation."
It's possible that you didn't see that popup to install the prerequisites. Once you install Unreal Engine you will get the prerequisites automatically.
If you already have it installed and you are still facing the issue, On January 15th 2021, a new version of "Automated Driving Toolbox Interface for Unreal Engine 4 Projects" was published. Try installing it
To get the latest version, open Add-Ons Explorer > Manage Add-Ons, uninstall the current support package, and then re-install it.
