diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
index c58379ea3e..9d1e95657d 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
@@ -414,7 +414,6 @@ namespace AzToolsFramework
             }
 
             m_templateFilePathToIdMap.emplace(AZStd::make_pair(filePath, newTemplateId));
-            newTemplate.MarkAsDirty(true);
             
             return newTemplateId;
         }
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoCache.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoCache.cpp
index bc48846585..dcf2a57c64 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoCache.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoCache.cpp
@@ -130,10 +130,7 @@ namespace AzToolsFramework
 
             if (!instanceOptionalReference.has_value())
             {
-                AZ_Warning(
-                    "Undo", false,
-                    "PrefabUndoCache was told to update the cache for entity of id %p (%s), but that entity does not have an owning instance.",
-                    entityId, entity->GetName().c_str());
+                // This is not an error, we just don't handle this entity.
                 return;
             }