Sprites in the Sprite Library are not changed when the preview thumbnails are set to smallest

How to reproduce:
1. Open the attached project "SpriteLibraryBlendTree.zip"
2. Open Assets/SpritesLibraries/CarTeamGreen.spriteLib
3. Select Inhertied>Team in the Sprite Library Editor
4. Drag and drop Assets/Sprites/car_yellow_0.png onto "car_green_0" in the Sprite Library Editor

Expected results: The Sprite and the Sprite name have changed
Actual results: Only the Sprite name has changed

Reproducible with: 9.0.3 (2022.3.8f1), 10.0.2 (2023.1.11f1, 2023.2.0b7, 2023.3.0a3)
Could not test with: 2021.3.30f1 (no Sprite Library Editor)

Reproducible on: Windows 10 22H2
Not reproducible on: No other environment tested