Steps to reproduce:
1. Create new Unity Project using empty Universal 3D Template
2. In Hierarchy window Create Terrain GO (3D Object > Terrain)
3. In Project window create a Material (Create > Material)
4. Drag the Material on Terrain in Scene view or in Hierarchy window
5. Observe the Console window

Actual results: Warning is thrown when assigning Material to Terrain “[Terrain] The provided Material's shader might be unsuitable for use with Terrain in the active render pipeline. We recommend you use Universal Render Pipeline/Terrain/Lit instead.”
Expected results:  No warnings should be thrown in the Console after assigning Material to Terrain

Reproducible with versions: 6000.4.0a1
Can’t test with versions: 6000.3.0b2 and lower (Can’t assign Material to Terrain)

Tested on (OS): macOS Silicon, Sequoia 15.6 (M1), Windows 11

Warning:
[Terrain] The provided Material's shader might be unsuitable for use with Terrain in the active render pipeline. We recommend you use Universal Render Pipeline/Terrain/Lit instead.

If this isn't the case, add the "TerrainCompatible" = "True" tag in your shader's property block to suppress this warning.
UnityEditor.MaterialEditor:ValidateAndWarnTerrainMaterial (UnityEngine.Material)
UnityEditorInternal.InternalEditorUtility:HierarchyWindowDragByID (UnityEngine.EntityId,UnityEngine.Vector3,UnityEditor.HierarchyDropFlags,UnityEngine.Transform,bool)
UnityEditorInternal.InternalEditorUtility:HierarchyWindowDragByID (UnityEngine.EntityId,UnityEditor.HierarchyDropFlags,UnityEngine.Transform,bool) (at /Users/bokken/build/output/unity/unity/Editor/Mono/InternalEditorUtility.bindings.cs:303)
UnityEditor.DragAndDrop:DropOnHierarchyWindow (int,UnityEditor.HierarchyDropFlags,UnityEngine.Transform,bool)
Unity.Hierarchy.Editor.HierarchyGameObjectHandler:DoHandleDrop (Unity.Hierarchy.HierarchyViewDragAndDropHandlingData&,bool) (at /Users/bokken/build/output/unity/unity/Modules/HierarchyEditor/ScriptBindings/HierarchyGameObjectHandler.bindings.cs:741)
Unity.Hierarchy.Editor.HierarchyGameObjectHandler:Unity.Hierarchy.IHierarchyEditorNodeTypeHandler.OnDrop (Unity.Hierarchy.HierarchyViewDragAndDropHandlingData modreq(System.Runtime.InteropServices.InAttribute)&) (at /Users/bokken/build/output/unity/unity/Modules/HierarchyEditor/ScriptBindings/HierarchyGameObjectHandler.bindings.cs:331)
Unity.Hierarchy.HierarchyViewDragHandler:HandleNodeHandlersDrop (Unity.Hierarchy.HierarchyViewDragHandler/HierarchyViewDragAndDropTargets,UnityEngine.UIElements.DragAndDropData,Unity.Hierarchy.HierarchyNode&,bool) (at /Users/bokken/build/output/unity/unity/Modules/Hierarchy/Managed/HierarchyViewDragHandler.cs:295)
Unity.Hierarchy.HierarchyViewDragHandler:HandleDrop (UnityEngine.UIElements.HandleDragAndDropArgs) (at /Users/bokken/build/output/unity/unity/Modules/Hierarchy/Managed/HierarchyViewDragHandler.cs:320)
UnityEngine.GUIUtility:ProcessEvent (int,intptr,bool&) (at /Users/bokken/build/output/unity/unity/Modules/IMGUI/GUIUtility.cs:224)