Sprite Skin deformation breaks when using MaterialPropertyBlock to set Instance Properties on a specific shader

How to reproduce:
1. Open the attached “IN-102621” project
2. Open the “SampleScene” Scene
3. In the Hierarchy expand the “Rig Deformation Test 2.a (Broken: Material Property Block)” GameObject
4. Select the Target GameObject and change the Transform component Position value to -10 in the Inspector window
5. Observe the “Rig Deformation Test 2.a (Broken: Material Property Block)” GameObject bend downwards
6. Select the “Rig Deformation Test 2.a (Broken: Material Property Block)” GameObject
7. In the Inspector window right click the “Material Properties (Script)” component and select the “Update Material Properties” option
8. Observe the “Rig Deformation Test 2.a (Broken: Material Property Block)” GameObject

Expected result: The GameObject keeps bending downwards
Actual result: The GameObject is not bending downwards

Reproducible with: 2022.1.0a1, 2022.3.64f1, 6000.0.52f1, 6000.1.10f1, 6000.2.0b8

Reproduced on: Windows 11
Not reproduced on: No other environment tested

Note: Removing Sprite Skin and Sprite Renderer components from the “Submachine Gun” GameObject inside the “Rig Deformation Test 2.a (Broken: Material Property Block)” GameObject and then adding them back using Ctrl + Z will make the Sprite Skin deformation work again