First of all, welcome to the forum! Secondly, if you’re at all concerned about messing with anything, ask your team if they have source control set up. Source control is something you should have either way, FMOD or not.
Each team member should have a local copy of the UE4 integration in their project Plugins folder. If you update to a new version of Unreal, you’ll need to download that new versions integration, which releases a few weeks after each new official engine version release. Also, depending on the integration version, you may need to update FMOD Studio. For instance, FMOD Studio 2.00.04 is only released for the UE4.23 integration (as of this writing). Each person does not need to have FMOD Studio installed.
Our dev team keep the integration locally on each computer with a line in the .gitignore file so that it doesn’t push to our source control. In the event that we update, the integration doesn’t need to be cleaned from the repo before bringing the new version.
I’d also recommend that you keep your FMOD project in a separate repo, and only build the banks to your Unreal project. Keeps things cleaner, you’ll only be pushing the built bank files to the main game repo. Also, if you plan on keeping the FMOD project in a separate repo a few things to look out for:
File Size (This goes for everything, really. Keep your asset files under 100mb. You may need to split your banks depending on your encoding settings and size of your project.)
Make sure to set up your gitignore file to exclude cache files (the excluded folders can be found here: Fmod and Source Control. I found that out the hard way after we had to purge 50000+ cache files from our repo.)
Do not use any special characters in your file or folder names. Unreal doesn’t play nice with special characters in its content directories, but FMOD will let you make and build folders and files with special characters. This can cause a lot of headaches, talking from experience. Treat them like any other game file, only dashes (_ or -) and letters and numbers. Just for safety.
Hope that helps! Anything that isn’t clear let me know.