This issue can be workaround by changing the shader from Unlit/Texture to the Universal Render Pipeline/Unlit shader we provide, also making sure the that Render Queue is correct.
We have reviewed the issue carefully, and in this case, the team is unable to prioritize fixing this bug on the material upgrader in a timely manner. There are a number of reasons we make this decision, including the impact and severity of the issue across our user and customer base, and the possibility that future plans may solve the problem in a different way, or that a workaround for the bug may be available.
Today we will be closing this case. Thank you again for taking the time to report this issue.