Reproduction steps:
1. Open the attached “IN-96080 Asset Manager OBJ Upload Error Issue - Repro - Latest.zip“ project (link in the internal comments)
2. Link the project to a Unity Cloud project in the Projects Settings… > Services (you will need to add the Asset Manager service to your project within your organisation’s Unity Cloud dashboard)
3. Open the Asset Manager window (Window > Asset Manager)
4. In the Asset Manager window, open the Upload tab
5. Drag and drop the “MugOBJ” asset from the Project window onto the Asset Manager window (the asset’s file path is displayed in the internal comments)
6. Observe the Console (Expected/Actual result 1)
7. Press the “Upload 1 Asset”/”Upload 2 Assets” button
8. Observe the Console (Expected/Actual result 2)

Expected results: 1) The “MugOBJ” asset appears in the list of assets in the Upload tab of the Asset Manager window; 2) The “MugOBJ” asset is successfully uploaded to the Unity Cloud dashboard as “Approved”
Actual results: 1) The “MugOBJ” asset appears in the list of assets in the Upload tab of the Asset Manager window but the “Asset does not exist: <PATH_TO_DIRECTORY_WHERE_MODEL_IS>” error gets displayed in the Console; 2) “UnauthorizedAccessException: Access to path <PATH_TO_DIRECTORY_WHERE_MODEL_IS> is denied” gets thrown in the Console and the “MugOBJ” asset or its “Models” dependency is uploaded as a “Draft” (depending on the Asset Manager’s Upload Settings - see the Notes)

Reproducible with: 1.2.1 (2023.1.0a26, 2023.1.20f1, 6000.0.30f1, 6000.0.51f1), 1.5.1 (6000.0.51f1, 6000.0.54f1, 6000.1.14f1, 6000.2.0b12, 6000.3.0a3)
Not reproducible with: 1.1.0 (2022.3.64f1, 6000.0.30f1), 1.2.1 (2022.3.65f1, 2023.1.0a25), 1.5.1 (2022.3.65f1)
Could not test with: 0.9.0 (2021.3.53f1) (Asset Manager window stuck on “Loading…”)

Asset Manager package regressed version: 1.2.1
Editor regressed version: 2023.1.0a26

Reproduced on: Windows 11 Pro (24H2)
Not reproduced on: No other environment tested

Notes:
- The issue can be prevented by changing the “Material Creation Mode” property to “None” inside the model's Import Settings in the Inspector or by setting the Dependencies property to “Ignore” in the Asset Manager’s Upload Settings but these are not proper workarounds
- When the Dependencies property in the Asset Manager’s Upload Settings is set to “Separate”, then only the “Models” dependency of the “MugOBJ” asset gets uploaded as a “Draft” and the “MugOBJ” Asset gets uploaded as “Approved”. However, if the Dependencies property is set to “Embedded”, then the “MugOBJ” asset itself gets uploaded as a “Draft”
- FBX assets do not reproduce the issue but using FBX is not ideal for the customer
- Reproducible in a new project using the same “MugOBJ” asset
- Full error messages are available in the internal comments