A Material Variant is generated instead of a Material when executing “Create Material” from the context menu

Reproduction steps:
1. Open the attached “BugRepro” project
2. Select the “Assets/MyMaterial.mat” material in the Project window
3. Righ-click and choose Create > Material from the context menu

Expected result: A Material is created
Actual result: A Material Variant is created

Reproducible with: 2022.3.17f1, 2022.3.43f1, 6000.0.17f1
Not reproducible with: 2021.3.43f1, 2022.3.16f1

Reproducible on: Windows 11
Not reproducible on: No other environment tested