Cancelling this 2023.2 tech release issue since the support for this release has come to end of life. Cancelling this 2023.2 port case does not affect any LTS or Unity 6 Beta/Preview that remain open.
How to reproduce:
1. Open the “IN-52631_repro.zip“ project
2. Open the “TestScene“
3. In the Hierarchy select the RootCanvas->OwningPrefab->PrefabWithNestedCanvas
4. Right-click the “PrefabWithNestedCanvas“ GameObject and select IGT-> ManipulatePrefab
5. Observe the Scale of the “PrefabWithNestedCanvas“ GameObject in the Inspector window
Expected result: All Scale values are one
Actual result: All Scale values are zero