Reproduction steps:
1. Open the attached “Repro.zip” project
2. Open the “Assets/Scenes/SampleScene.unity” Scene
3. Open the Animator window (Window > Animation > Animator)
4. Select the “Repro” GameObject in the Hierarchy window
5. Add a Condition to the transition from the “New StateMachine” to the “New State”
5. Enter the Play Mode
6. Observe the Animator window
Expected result: The transition from the “New StateMachine” to the “New State” doesn’t occur
Actual result: Transition from the “New StateMachine” to the “New State” occurs
Reproducible with: 2021.3.28f1, 2022.3.4f1, 2023.1.3f1, 2023.2.0a22
Reproducible on: Windows 10 Pro (22H2)
Note: Selecting and moving the “New StateMachine” Sub-State Machine fixes the issue, thus the issue only occurs if the component isn’t touched after creating it