The editor crashes when attempting to revert the material on the cube back to default which is the World Grid Material.
The cube is already set to WorldGridMaterial so I am not sure why the arrow is even available to select.
We have been seeing some D3D crashes with Engine Content such as UE-44019 and it might be similar.
This is a Regression from 4.15.2
Result: The Editor crashes
UE4Editor-StaticMeshEditor.dll!FMeshMaterialsLayout::OnMaterialChanged() [d:\build\++ue4+release-4.16+compile\sync\engine\source\editor\staticmesheditor\private\staticmesheditortools.cpp:2085] UE4Editor-StaticMeshEditor.dll!TBaseSPMethodDelegateInstance<0,FMeshMaterialsLayout,0,TTypeWrapper<void> __cdecl(UMaterialInterface * __ptr64,UMaterialInterface * __ptr64,int,bool)>::Execute() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\public\delegates\delegateinstancesimpl.h:327] UE4Editor-StaticMeshEditor.dll!TBaseSPMethodDelegateInstance<0,FMeshMaterialsLayout,0,void __cdecl(UMaterialInterface * __ptr64,UMaterialInterface * __ptr64,int,bool)>::ExecuteIfSafe() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\public\delegates\delegateinstancesimpl.h:434] UE4Editor-PropertyEditor.dll!TBaseDelegate<void,UMaterialInterface * __ptr64,UMaterialInterface * __ptr64,int,bool>::ExecuteIfBound() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\public\delegates\delegatesignatureimpl.inl:624] UE4Editor-PropertyEditor.dll!FMaterialItemView::ReplaceMaterial() [d:\build\++ue4+release-4.16+compile\sync\engine\source\editor\propertyeditor\private\propertycustomizationhelpers.cpp:829] UE4Editor-PropertyEditor.dll!FMaterialItemView::OnResetToBaseClicked() [d:\build\++ue4+release-4.16+compile\sync\engine\source\editor\propertyeditor\private\propertycustomizationhelpers.cpp:910] UE4Editor-PropertyEditor.dll!TMemberFunctionCaller<FMaterialItemView,FReply (__cdecl FMaterialItemView::*)(void) __ptr64>::operator()<>() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\public\delegates\delegateinstanceinterface.h:165] UE4Editor-PropertyEditor.dll!UE4Tuple_Private::TTupleImpl<TIntegerSequence<unsigned int> >::ApplyAfter<TMemberFunctionCaller<FMaterialItemView,FReply (__cdecl FMaterialItemView::*)(void) __ptr64> >() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\public\templates\tuple.h:497] UE4Editor-PropertyEditor.dll!TBaseSPMethodDelegateInstance<0,FMaterialItemView,0,FReply __cdecl(void)>::Execute() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\public\delegates\delegateinstancesimpl.h:327] UE4Editor-Slate.dll!TBaseDelegate<FReply>::Execute() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\public\delegates\delegatesignatureimpl.inl:537] UE4Editor-Slate.dll!SButton::OnMouseButtonUp() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\slate\private\widgets\input\sbutton.cpp:278] UE4Editor-Slate.dll!<lambda_8d0e9a1da76abd0a756a3a9d775f5ed1>::operator()() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\slate\private\framework\application\slateapplication.cpp:5049] UE4Editor-Slate.dll!FEventRouter::Route<FReply,FEventRouter::FToLeafmostPolicy,FPointerEvent,<lambda_8d0e9a1da76abd0a756a3a9d775f5ed1> >() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\slate\private\framework\application\slateapplication.cpp:239] UE4Editor-Slate.dll!FSlateApplication::RoutePointerUpEvent() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\slate\private\framework\application\slateapplication.cpp:5038] UE4Editor-Slate.dll!FSlateApplication::ProcessMouseButtonUpEvent() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\slate\private\framework\application\slateapplication.cpp:5515] UE4Editor-Slate.dll!FSlateApplication::OnMouseUp() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\slate\private\framework\application\slateapplication.cpp:5495] UE4Editor-Core.dll!FWindowsApplication::ProcessDeferredMessage() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\private\windows\windowsapplication.cpp:1704] UE4Editor-Core.dll!FWindowsApplication::DeferMessage() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\private\windows\windowsapplication.cpp:2127] UE4Editor-Core.dll!FWindowsApplication::ProcessMessage() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\private\windows\windowsapplication.cpp:867] UE4Editor-Core.dll!FWindowsApplication::AppWndProc() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\private\windows\windowsapplication.cpp:714] USER32.dll!0x0000000062361C24 USER32.dll!0x000000006236156C UE4Editor-Core.dll!FWindowsPlatformMisc::PumpMessages() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\core\private\windows\windowsplatformmisc.cpp:980] UE4Editor.exe!FEngineLoop::Tick() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\launch\private\launchengineloop.cpp:3056] UE4Editor.exe!GuardedMain() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\launch\private\launch.cpp:166] UE4Editor.exe!GuardedMainWrapper() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\launch\private\windows\launchwindows.cpp:134] UE4Editor.exe!WinMain() [d:\build\++ue4+release-4.16+compile\sync\engine\source\runtime\launch\private\windows\launchwindows.cpp:210] UE4Editor.exe!__scrt_common_main_seh() [f:\dd\vctools\crt\vcstartup\src\startup\exe_common.inl:264] KERNEL32.DLL!0x0000000063008364 ntdll.dll!0x0000000064E270D1 ntdll.dll!0x0000000064E270D1
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-44057 in the post.