How to reproduce:
1. Open the “AnimationPreviewTest” project
2. Open the “SampleScene”
3. Move the “Cube” prefab from the Assets folder under the “AnimationTest” GameObject in the Hierarchy
4. Open the Animation window (Window > Animation)
5. Select “AnimationTest” GameObject in the Hierarchy
6. Click on any point in the Timeline to enable the Preview mode
7. Select the “Cube” GameObject and change its position to (0,0,0) in the Inspector
8. Dublicate the “Cube” GameObject

Expected result: Position of the duplicated GameObject is the same as the position of the original GameObject in the Hierarchy
Actual result: Position of the duplicated GameObject is the original position of the Prefab

Reproducible in: 2022.2.0a8, 2022.3.19f1, 2023.2.8f1, 2023.3.0b4
Not reproducible in: 2021.3.34f1, 2022.2.0a7

Reproduced on: Windows 10
Not reproduced on: No other environments tested