Thank you for reporting a bug to Unity.
After reviewing the behavior, we've confirmed it aligns with the current design and intended use of the feature. We understand this may differ from your expectations or workflow.
UI Toolkit expects a UI shader. In the future we will try to add extra indications to make it clearer, instead of trying to render with an incompatible shader. If you need help creating a compatible shader, see this manual page:
https://docs.unity3d.com/Manual/ui-systems/get-started-with-ui-shader-graph.html
We will close this case as 'As Designed.' If you have feedback on how the feature could better meet your needs, please let us know - we value your input and consider it in future improvements.