Empty Animator Controller completely freezes position and rotation after Timeline finishes (very basic cutscene setup: control is not returned to the player)

I was trying to make a basic intro cutscene using Timeline in which character moves from left to right (and other irrelevant things happen). After the cutscene the control is supposed to return to the player. The problem is it doesn’t. Even trying to move the character in the editor doesn’t work. Returning control to the player after the cutscene seems like a very basic thing but after spending several hours of trying and googling I wasn’t able to find a solution.

I was able to reproduce minimum example of the problem:

Open the scene and press play.

Two circles move from left to right. After the timeline finishes playing green circle stays inplace (as expected) and you are able to freely move it in the editor (as expected). Red circle on the other hand magically teleports to the initial position and is now completely blocked: trying to change it’s position and rotation in editor has no effect.

Both circles have “Animator” component attached to them and are completely equivalent in other ways. The only difference is that the red circle has the empty (created using Right Click → Create Animator Controller) animator controller set in it’s Animator-Component while Green circles Animator-Component controller is set to None (default value).

Is this a bug?

In the real world setup I need the player (which is animated) to have an Animator Controller to animate it through the game.

Unity 2018.3.0f2, MacOS

It may be a bug, but only when returning to an empty controller. It appears that the controller is writing default values every frame after the timeline finishes, which is why it’s ‘locked’. When returning to a controller with animation states it behaves as expected (i.e. the controllers animation plays).