Are we allowed to use Scratch to make the game? Im guessing not as its much easier to use than unity or other studios and it would give an advantage but Im curious.
According to the rules, ANY engine you can imagine is allowed. For what I understood, "game engine" includes every piece of software that could be used to make the base of a game work. I haven't used Scratch that much but from what I can tell, it probably could be used to make a game work. However, consider that while it might be easier to use for beginners, on long term it might have some limitations that could be easily solved with a more complex programm. (I don't know how to code so I use Construct 2, and I'm aware that maybe if I knew how to use Unity, I could make better games).
So in my opinion, you should be allowed to use Scratch, since it could be considered as a game engine. However, this is not an official response, just my thoughts on that. While you can stay with my opinion, I would still recommend you to ask a mod directly, so you can get an official response, but as I stated, from my point of view, there's no reason why your submission would be removed just because you used Scratch.