From 9435305f01bce2bb88fcabb143654bf02edeeb61 Mon Sep 17 00:00:00 2001
From: Terry Michaels <81711813+tjmichaels@users.noreply.github.com>
Date: Thu, 27 May 2021 19:31:32 -0500
Subject: [PATCH] Make entity creation via asset drag and drop properly create
 an entity so it works with prefabs correctly (#1010)

---
 .../AzAssetBrowserRequestHandler.cpp          | 26 +++++++++++--------
 1 file changed, 15 insertions(+), 11 deletions(-)

diff --git a/Code/Sandbox/Editor/AzAssetBrowser/AzAssetBrowserRequestHandler.cpp b/Code/Sandbox/Editor/AzAssetBrowser/AzAssetBrowserRequestHandler.cpp
index c8bd157b65..e0ba106875 100644
--- a/Code/Sandbox/Editor/AzAssetBrowser/AzAssetBrowserRequestHandler.cpp
+++ b/Code/Sandbox/Editor/AzAssetBrowser/AzAssetBrowserRequestHandler.cpp
@@ -137,8 +137,20 @@ namespace AzAssetBrowserRequestHandlerPrivate
                     entityName = AZStd::string::format("Entity%d", GetIEditor()->GetObjectManager()->GetObjectCount());
                 }
 
-                AZ::Entity* newEntity = aznew AZ::Entity(entityName.c_str());
-                EditorEntityContextRequestBus::Broadcast(&EditorEntityContextRequests::AddRequiredComponents, *newEntity);
+                AZ::EntityId targetEntityId;
+                EditorRequests::Bus::BroadcastResult(targetEntityId, &EditorRequests::CreateNewEntityAtPosition, worldTransform.GetTranslation(), AZ::EntityId());
+
+                AZ::Entity* newEntity = nullptr;
+                AZ::ComponentApplicationBus::BroadcastResult(newEntity, &AZ::ComponentApplicationRequests::FindEntity, targetEntityId);
+
+                if (newEntity == nullptr)
+                {
+                    return;
+                }
+
+                newEntity->SetName(entityName);
+
+                newEntity->Deactivate();
 
                 // Create component.
                 AZ::Component* newComponent = newEntity->CreateComponent(componentTypeId);
@@ -151,15 +163,7 @@ namespace AzAssetBrowserRequestHandlerPrivate
                     newEntity->AddComponent(newComponent);
                 }
 
-                //  Set entity position.
-                auto* transformComponent = newEntity->FindComponent<Components::TransformComponent>();
-                if (transformComponent)
-                {
-                    transformComponent->SetWorldTM(worldTransform);
-                }
-
-                // Add the entity to the editor context, which activates it and creates the sandbox object.
-                EditorEntityContextRequestBus::Broadcast(&EditorEntityContextRequests::AddEditorEntity, newEntity);
+                newEntity->Activate();
 
                 // set asset after components have been activated in AddEditorEntity method
                 if (newComponent)