I’m interested in replicating the soft shadow of the boxes, which “blur out”. However, i don’t understand how lights and shadows are rendered on the imported model (aside from the directional light which im not interested in).
they are not “rendered”, they are baked. The model is the entire scene that you see and shadows have been pre-rendered in something like blender, baked into a separate texture and are just being shown here. It is the “lightmap” example, an example of how to use a pre-rendered light map (more like a shadow map really, but hey, we didn’t invent the names).
So the answer is: Blender. I guess.