Reproduction steps:
1. Open the “Bug_URP-RenderObject-Entity-GameObject“ project
2. Open the “SampleScene” scene
3. Observe the colors of the two cubes in the Scene view
Expected result: Both cubes are green
Actual result: “CubeGameObject” is green, “CubeEntity” is grey
Reproduced in: 1.0.0-pre.15 (2022.2.7f1)
Not reproduced in: 0.17.0-preview.42 (2020.3.45f1), 0.51.1-preview.21 (2021.3.18f1)
Could not test in: 1.0.0-pre.15 (2023.1.0b4, 2023.2.0a2) (Entities is not compatible)
Reproduced using: macOS 13.0.1 (Intel), Windows 10 (by user)
Notes:
1. Also reproduced in a Standalone Player
2. Whether the GameObject or the Entity is green depends on whether the Queue property in “Assets/Settings/URP-HighFidelity-Renderer” is set to Opaque or Transparent respectively
3. This is costing extra GPU resources since now it is needed to override 2 times: once for GameObjects, and once for Entities
4. Related forum thread: https://forum.unity.com/threads/render-objects-material-override-with-entities-in-urp.1383141/