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There should be no rules against the use of the scratch "engine" (you can use any game engine tbh), but i would consider using something different, something easy like Pygame for example, since scratch is not really made for game jams, and i have no idea how you expect to submit your game using scratch. But hey, it's your game your choice, this is only my opinion.

infact, at the end of the itch.io page for this game jam you can find the answer to the question of game engines:

(you should see a screenshot right after this sentence)