Reproduction steps:
1. Open the attached Project "Case_1423203.zip" and load Scene "SampleScene"
2. Select the "Test" GameObject in the Hierarchy
3. Right-click the Component "Test" in the Inspector and click "foo = null" in the Context Menu
4. Right-click the Component "Test" in the Inspector and click "Modified Component -> Apply to Prefab 'Test'"
Expected result: Foo remains null
Actual result: Foo is reverted back to its previous state and "Could not apply data updates at destination property with path 'foo'" error is thrown in the Console
Reproducible with: 2021.3.1f1, 2022.1.0f1, 2022.2.0a11
Not reproducible with: 2019.4.38f1, 2020.3.34f1 ("The list of [SerializeReference] objects being deserialized is from a more recent version of Unity. This is not supported and objects will be skipped." error is thrown)
Notes:
- Applying the changes through the Prefab Overrides menu prevents the issue from reproducing