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How about free forever assets in Unreal Marketplace and assets that can be used only with Unreal Engine? And Quixel Megascans? Can I use it?

You can use free forever assets even if they're restricted to the engine you're working with.

From what I can tell regarding Quixel Megascans specifically (and this is their TOS not this gamejam's rules), you can use their free assets non-commercially so it should be fine for this jam as long as you aren't selling the game you make.

I don't think that's an issue for Quixel. Unreal Engine TOS seems to overrule Quixel TOS per their arrangement with Epic according to this. 

https://www.reddit.com/r/gamedev/comments/rhfvxg/am_i_able_to_use_assets_from_th...