Hey there, I noticed a new problem that appeared when I upgraded to 2022.1 beta. Repro is very simple:
Create a prefab called “Parent”
Create two prefab variants out of Parent called “ChildA” and “ChildB”
Open ChildA (edit the prefab) and try to add ChildB as an instance
When I do this, I get the message: “Cyclic prefab nesting not supported”. I see how I can’t add ChildA to ChildA (or any descendants of ChildA), but I’d expect to be able to add siblings and ascendants of ChildA.
I have a similar problem when trying to follow a Lego Tutorial “Activate the Elevator”, when you drag the Elevator Behaviour Brick into the Scene view.