"Visualize Level Instance Editing" defaults to on, during sequencer playback (for sequences withing a level instance)

Version: Main branch 46320669; 5.7 Preview Epic Launcher pre-built;

Issue: Playing a <sequence> that is withing a <level instance> turns back on gray <level instance editing> visualizing shader even when viewport show flag <visualize level instance editing> is off.

Workaround: Turning off "Toggle Context Restriction" [SHIFT+L] gets rid of the gray (level instance editing) shader completely and thus is not present also when level instanced sequence is being played.

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Steps to Reproduce

1. Create a <level instance>
2. Go to the level instance's <edit mode>
3. Add a <sequence> into the level instance
4. Go to viewport's <show flags> options (the eye icon in the viewport's top-right corner) → <visualize> → <visualize level instance editing> → <off>
5. gray "isolation" shader disappears (correct behavior)
6. hit play on the imported sequence → gray "isolation" shader turns back on (should stay off)