SpriteShape alpha value of color not working when using URP and Sprite-Lit-Default mat

[2D][Sprite Shape][URP] SpriteShape alpha value of color not working

Using URP 2D, SpriteShape is not applying the Alpha value of its Color field to the image

Repro steps:

• Open attached project, select Closed Sprite Shape in SampleScene
• In Inspector, select Color in Sprite Shape Renderer component, observe color picker alpha is at 38 but sprite shape still looks opaque

Expected result: Sprite shape becomes more transparent with lower alpha values in Sprite Shape Renderer
Actual result: Sprite shape does not become more transparent with lower alpha values in Sprite Shape Renderer