From 8a7f156e2c66235546589744d07622da69483d1a Mon Sep 17 00:00:00 2001
From: Danilo Aimini <82231674+AMZN-daimini@users.noreply.github.com>
Date: Wed, 2 Jun 2021 14:45:43 -0700
Subject: [PATCH] LYN-4133 | Prefab Container Transform stores non-default
 values to template on Create Prefab (#1038)

* Show container transforms, reset container transform to zero before saving a prefab after create.

* Fix order of operations to prevent patching issues

* Reset the entity to the Identity Transform instead of the default constructor to correctly set the scale to 1.0
---
 .../Prefab/PrefabPublicHandler.cpp            | 26 +++++++++++++++++--
 .../PropertyEditor/EntityPropertyEditor.cpp   |  3 ++-
 2 files changed, 26 insertions(+), 3 deletions(-)

diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.cpp
index fadcc1b81f..6501986231 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.cpp
@@ -243,11 +243,33 @@ namespace AzToolsFramework
                     instanceToCreate->get(), commonRootEntityOwningInstance->get().GetTemplateId(), undoBatch.GetUndoBatch(),
                     AZStd::move(patch));
 
+                // Reset the transform of the container entity so that the new values aren't saved in the new prefab's dom.
+                // The new values were saved in the link, so propagation will apply them correctly.
+                {
+                    AZ::Entity* containerEntity = GetEntityById(containerEntityId);
+
+                    PrefabDom containerBeforeReset;
+                    m_instanceToTemplateInterface->GenerateDomForEntity(containerBeforeReset, *containerEntity);
+
+                    AZ::TransformBus::Event(containerEntityId, &AZ::TransformBus::Events::SetParent, AZ::EntityId());
+                    AZ::TransformBus::Event(containerEntityId, &AZ::TransformBus::Events::SetLocalTM, AZ::Transform::CreateIdentity());
+
+                    PrefabDom containerAfterReset;
+                    m_instanceToTemplateInterface->GenerateDomForEntity(containerAfterReset, *containerEntity);
+
+                    // Update the state of the entity
+                    PrefabUndoEntityUpdate* state = aznew PrefabUndoEntityUpdate(AZStd::to_string(static_cast<AZ::u64>(containerEntityId)));
+                    state->SetParent(undoBatch.GetUndoBatch());
+                    state->Capture(containerBeforeReset, containerAfterReset, containerEntityId);
+
+                    state->Redo();
+                }
+
                 // This clears any entities marked as dirty due to reparenting of entities during the process of creating a prefab.
-                // We are doing this so that the changes in those enities are not queued up twice for propagation.
+                // We are doing this so that the changes in those entities are not queued up twice for propagation.
                 AzToolsFramework::ToolsApplicationRequestBus::Broadcast(
                     &AzToolsFramework::ToolsApplicationRequestBus::Events::ClearDirtyEntities);
-                
+
                 // Select Container Entity
                 {
                     auto selectionUndo = aznew SelectionCommand({containerEntityId}, "Select Prefab Container Entity");
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/EntityPropertyEditor.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/EntityPropertyEditor.cpp
index d0f3fa452a..60a53aca42 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/EntityPropertyEditor.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/EntityPropertyEditor.cpp
@@ -969,7 +969,8 @@ namespace AzToolsFramework
         {
             // Build up components to display
             SharedComponentArray sharedComponentArray;
-            BuildSharedComponentArray(sharedComponentArray, selectionEntityTypeInfo != SelectionEntityTypeInfo::OnlyStandardEntities);
+            BuildSharedComponentArray(sharedComponentArray,
+                !(selectionEntityTypeInfo == SelectionEntityTypeInfo::OnlyStandardEntities || selectionEntityTypeInfo == SelectionEntityTypeInfo::OnlyPrefabEntities));
 
             if (sharedComponentArray.size() == 0)
             {