How to reproduce:
1. Open the attached project
2. Open SampleScene.unity
3. Select the New Timeline object in the Hierarchy
4. Double click Playable to open Timeline in the Inspector
5. Lock the Timeline tab
6. Open Project view, select any material and drag drop it into scene
7. Observe Console
Alternative steps, no project:
1. Create a timeline in the Project (Create>Timeline>Timeline)
2. Drag and drop the timeline into the scene
3. Create/add any type of a prefab containing a mesh (to accept Material drag and drop events)
4. Position the scene camera so that this prefab would be visible
5. Open the timeline from step 1 and lock its window
6. Create a new Material and drag it to the the scene view (drag it over the prefab from #1 if the error doesn't appear)
Expected result: No errors are thrown
Actual result: The following error is thrown
InvalidOperationException: Cannot revert overriden properties in Animation Mode.
UnityEditor.PrefabUtility.WarnIfInAnimationMode (UnityEditor.PrefabUtility+OverrideOperation overrideOperation, UnityEditor.InteractionMode action) (at /Users/bokken/build/output/unity/unity/Editor/Mono/Prefabs/PrefabUtility.cs:417)
UnityEditor.PrefabUtility.RevertPropertyOverride (UnityEditor.SerializedProperty instanceProperty, UnityEditor.InteractionMode action, System.Boolean raiseRevertEvents) (at /Users/bokken/build/output/unity/unity/Editor/Mono/Prefabs/PrefabUtility.cs:1066)
UnityEditor.MaterialEditor.TryRevertDragChanges () (at /Users/bokken/build/output/unity/unity/Editor/Mono/Inspector/MaterialEditor.cs:2965)
UnityEditor.MaterialEditor.ClearDragMaterialRendering () (at /Users/bokken/build/output/unity/unity/Editor/Mono/Inspector/MaterialEditor.cs:2976)
UnityEditor.MaterialEditor.HandleRenderer (UnityEngine.Renderer r, System.Int32 materialIndex, UnityEngine.Material dragMaterial, UnityEngine.EventType eventType, System.Boolean alt) (at /Users/bokken/build/output/unity/unity/Editor/Mono/Inspector/MaterialEditor.cs:3051)
Reproduced with: 2021.3.36f1, 2022.1.0a2, 2022.3.19f1, 2023.3.0a13, 2023.3.0b10, 6000.0.0b12
Platforms used: MacOS Sonoma 14.4 (M3), Windows 10