How to reproduce:
1. Open Unity Hub
2. Download and select the “Mixed Reality“ template
3. Select a Location for the project (like “C:\Users\<username>\Desktop\GameProject”, or preferably a longer one)
4. Type in a name for the project (like “Game“)
5. Observe the “Project Settings” window

Expected results: No message is displayed and Unity Hub allows project creation
Actual results: The “Your project settings will result in a path length that exceeds the character limit. Please shorten the path.“ message appears and denies project creation

Reproducible in: 3.7.0

Reproduced on: Windows 11 Pro (23H2)
Not reproduced on: No other environment tested

Notes:
- The issue is not reproducible with 2D, 3D, 2D (URP), 3D (URP), AR templates
- Reproducible with any Editor version selected that supports any of the mentioned affected templates
- It is more likely to be reproducible with long computer usernames or longer project names