Prefab Visibility Bug

[DoItForGrandpa]

Describe the bug
I have a few larger prefabs, and when you toggle the visibility off in the Entity Outliner it toggles the whole prefab visibility off, it flickers and becomes visible again but with no material you had assigned to it. Once you toggle visibility back on, it flickers and the material comes back. The mesh never stays invisible when the visibility is toggled off.

Steps to reproduce
Steps to reproduce the behavior:

1. Create a mesh and add a material component
2. Toggle visibility (see that it works fine)
3. create a prefab out of that created entity
4. Try to toggle visibility
5. See error

Expected behavior
Toggling visibility toggles the mesh to be invisible when toggled on in a prefab.

Actual behavior
In a prefab the mesh does not toggle invisible when visibility is toggled off.

Found in Branch
Dev Branch

Desktop/Device (please complete the following information):

• Device: PC
• OS: Windows
• Version 11

Additional context
N/A

[michalpelka]

Could you provide a hash of the commit you used in o3de's development branch?

[pollend]

Could this be related to this change? #17848