When importing a static mesh into a project with the appropriately named materials in it already they won't apply to the mesh automatically when setting Search Location to All Assets without being in the same folder. It works when they are in the same folder.

A quick way to get the materials needed was to import the example mesh with Material Import Method set to Create Materials and delete the mesh so all the materials exist in project with the correct names. Attached is the fbx I used to verify this bug.

Found in 4.22 CL# 7053642
Reproduced in 4.21 CL#4753647, 4.23.0 Preview 1 CL#7236301, 4.24 Main CL#7285696

Steps to Reproduce

1. Have materials named correctly for a specific mesh in a project.
2. Import the mesh into a separate folder from the one with the materials using the following settings (refer to ImportSettings.png attached):
-Skeletal Mesh = false
-Search Location = All Assets
-Material Import Method = Do not create material

Result: The mesh doesn't have the existing materials applied on import.

Expected: The mesh has the existing materials applied on import.

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ComponentTools - Import
Affects Versions4.
Target Fix4.24
CreatedJul 16, 2019
UpdatedJul 22, 2019