Editor freezes on "Reloading Domain" when entering Play Mode without being connected to Unity Version Control

How to reproduce:
1. Open attached project "IN-121517”
2. Open the Unity Version Control Panel
3. Enter Play Mode (repeat until issue is reproduced)
4. Observe freezing

Expected result: Play Mode is started
Actual result: Editor gets stuck on "Reloading Domain"

Reproducible with: 2023.1.0a3, 6000.0.61f1, 6000.2.10f1, 6000.3.0b8, 6000.4.0a3

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

Workaround: Deleting the “.plastic” folder in the project directory

Notes:

• issue is not reproducible consistently
• issue occurs in any scene