... Update to my previous comment: the "fix" doesn't work, my bad. What really fixes it is NO FOCUS ON SCENE. You can leave a Time node in your Shader Graph, you can use a Custom Function node like I said – what really matters is to set the UI's focus on another tab than Scene. What I do is make sure I'm in the Shader Graph tab (and the Scene tab isn't visible) when I want to bake. This, at least, works.

Here's a quick fix for people who cannot switch to a more recent version of Unity (I for one am stuck with 2022.3.0 for now).

In Shader Graph, do not use a Time node but instead, use a Custom Function that mimics it. The name you give to the custom function doesn't matter, it doesn't need an input value either. All you need is an output float, and the function's code be as follow (i.e. if you name the output "myOutput"):

myOutput = _Time.y;

Connect the output just like you would connect a Time node and it should let your shader work without triggering an infinite loop during bake.