Repro:
1. Upgrade attached project to a version where this issue is listed as reproducible & open scene "OutdoorsScene".
2. Ensure Scene view is visible, and that "Toggle Skybox, Fog and other effects" is enabled.
3. Open the prefab in the scene Hierarchy.
4. Look at the volumetric clouds.

Expected: The prefab context overlay covers the entire scene view.
Actual: The prefab context overlay doesn't cover the volumetric clouds.

Reproducible in: 2023.2.0b6, 2023.2.0a18
Not reproducible in: 2023.2.0a17, 2023.1.0b15, 2022.3.7f1, 2021.3.29f1

Did not regression test further. Please contact assigned ticket reporter for further testing if needed.

Notes:

• As an alternative to steps 1 & 2, you can set up volumetric clouds in a new HDRP project and create a prefab from an empty GameObject in hierarchy.
• Attached project version is 2021 for easier upgrading.
• Tested on Windows 10.
• Attached GIF of issue occurring.