diff --git a/Gems/Prefab/PrefabBuilder/PrefabGroup/PrefabGroupBehavior.cpp b/Gems/Prefab/PrefabBuilder/PrefabGroup/PrefabGroupBehavior.cpp
index 6bd8f0d049..af21e7297c 100644
--- a/Gems/Prefab/PrefabBuilder/PrefabGroup/PrefabGroupBehavior.cpp
+++ b/Gems/Prefab/PrefabBuilder/PrefabGroup/PrefabGroupBehavior.cpp
@@ -166,7 +166,7 @@ namespace AZ::SceneAPI::Behaviors
                 meshNodeFullName.append(meshNodeName.GetName());
 
                 auto meshGroup = AZStd::make_shared<AZ::SceneAPI::SceneData::MeshGroup>();
-                meshGroup->SetName(meshNodeFullName.c_str());
+                meshGroup->SetName(meshNodeFullName);
                 meshGroup->GetSceneNodeSelectionList().AddSelectedNode(AZStd::move(meshNodePath));
                 for (const auto& meshGoupNamePair : meshTransformMap)
                 {
@@ -374,10 +374,18 @@ namespace AZ::SceneAPI::Behaviors
     Events::ProcessingResult PrefabGroupBehavior::ExportEventHandler::UpdateManifest(
         Containers::Scene& scene,
         ManifestAction action,
-        [[maybe_unused]] RequestingApplication requester)
+        RequestingApplication requester)
     {
-        if (action != Events::AssetImportRequest::ConstructDefault)
+        if (action == Events::AssetImportRequest::Update)
         {
+            // ignore constructing a default procedural prefab if some tool or script is attempting
+            // to update the scene manifest
+            return Events::ProcessingResult::Ignored;
+        }
+        else if (action == Events::AssetImportRequest::ConstructDefault && requester == RequestingApplication::Editor)
+        {
+            // ignore constructing a default procedurla prefab if the Editor's "Edit Settings..." is being used
+            // the user is trying to assign the source scene asset their own mesh groups
             return Events::ProcessingResult::Ignored;
         }