There appears to be a bug with the "Create New Inherited Materials" option of the "Material Import Method" of the FBX Import Options.   Instead of creating a material instance of the material specified in the "Base Material Name" of the FBX Import Options, it creates a generic "standard material".

The correct behavior is the imported objects get a new instance of the base material specified in the FBX Import options.

Steps to Reproduce
  1. In UE, prepare a material to inherit from - any material will do.
  2. Create an object to be imported into UE as FBX.   Create an FBX file.
  3. Drag and drop (required instead of using File=>Import Into Level) the FBX file into the Content Browswer.  The FBX Import popup window will appear.   In the Material section, under "Material Import Method" select "Create New Instanced Materials".     For the "Base Material Name", select the UE material you wish to have the FBX actor inherit from.   Leave all the color and texture properties as "Do Not Override"
  4. Select Import All at the bottom of the FBX Import popup window.    Result: The imported FBX creates its own generic standard material.    Expected Result:   The imported FBX object(s) get assigned an instance of the the UE material specified on the FBX import options.

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Won't Fix
ComponentUE - Editor - Content Pipeline - FBX
Affects Versions5.1.1
Target Fix5.3
CreatedMar 3, 2023
ResolvedMay 25, 2023
UpdatedMay 30, 2023
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