Yes but those were never the problems. Flameouts were the problems, or engine failures (not explosions). There are many tales of 262 pilots having to land with 1 engine out, or both, but they didn't trail fire and they didn't blow up after UbiSoft's arbitrary timer limit.
What they could do is flame out (not get enough air intake to keep the combustion going) at high AoA and if the compressor created cavitations (again, not sure if that's the right term). Consequently, they could also, quality-of-engine-depending, have a failure in which part of the fan blades breaks or fractures. This would KILL the engine I have no doubt, but not set you on fire any more than a piston engine getting knocked out.
Further, each engine had an automatic self starter. In the case of a no-damage flame out you could try restarting theoretically. I don't know about that with actual pilot policy, since you would risk a little bit of a flame jet if any gas had pooled in the combustion chamber.
I'd like a mod that models flameouts (not flame UPS) and possibly engine damage, running rough, needing to throttle back, etc. All these would still be tied to throttle manipulation, but you would NOT get these arbitrarily fake instant-death flame trails.
My issue is the flames. The can't-put-them-out flames. I'm not saying I want perfect engines and would readily substitute "damage" in lieu of "flames"....
Something that lets me limp home instead of ending every sortie in a loss.
EDIT:
I wonder if this myth about flames started from ground-start sequences? You COULD get a get of flames out the back if you didn't start it right. There was a fire extinguisher ready at all times, though, and you shut the engine down, rinsed it out, and tried again. It wasn't an uncontrollable fire nor an engine failure. It wasn't common to only the 262 either. This was an issue for other jets at the time. It's ALSO common for piston engines. Why, the amount of flames belching out of a piston engine could set a plane on fire. That's why they also had fire extinguishers ready for every engine start.
Doesn't mean Piston engines caught fire like UbiSoft models jet engines. I think they just bought into the cheap myths that are unsubstantiated rather than actually doing any in-depth research. It's not the first time UbiSoft skimped on historical accuracy.