Yes - appears to be velvet and its rare I see an engineer goby get velvet.
I see the fish appear to be in quarantine. The dwarf lion will not tolerate copper well. For the other fish, Not sure if you are treatimg/medicating tank with anything but you will want to use a copper-based medication. Although many remedies contain the general name as ich or ick treatments, read the box to be sure it targets Oodinium. My choice is coppersafe or copper power at 2.25-2.5 therapuetic level at 80 degrees for a FULL 30 days monitored by a reliable copper test kit such as Hanna Brand (no api brand). Assure the medication you use states treats Oodinum. With velvet, fish will scratch body against hard objects, lethargic behavior, Loss of appetite and weight loss, Rapid, labored breathing, Fins clamped against the body, and typically stay at the surface of the water