How to reproduce:
1. Create a new project
2. Install AI Assistant
3. Ask AI Assistant to create a dice
4. Ask AI Assistant to make changes to the dice a few times (e.g., make it red)
5. Observe the Project window
Actual result: Models folder is created and contains multiple prefabs and folders for each change made
Expected result: One dice prefab is created and updated each time an iteration request is made
Reproducible with: 2.8.0-pre.1, 2.11.0-pre.2 (6000.4.11f1, 6000.5.0f1)
Reproducible on: macOS 26.4.1 (by user), Windows 11
Not reproducible on: No other environments tested
Note: Asset folders for sprites and materials also get created and contain multiple PNGs or materials for each change made