Update:
After further investigation, I have found the following:
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This issue exists in all projects (existing and new), so it appears to be related to UEFN generally. I haven’t yet tried reinstalling UEFN.
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It appears that whether materials are able to be reference in Verse code depends on whether they were referenced in Verse code previously. If a material was previously referenced in Verse code, then referencing it there continues to work. Even if a material was referenced in Verse code and then removed from the code it still works if I add it back to the code. However, if I never referenced it in code previously then referencing it in code will cause an error even if I created the material months before this issue occurred.
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Judging by the above, this appears to be related to whether the materials are “cooked” and there is a way to cook them via command line in Unreal Engine. However, I can’t find any reference to cooking specifically in UEFN. Does someone know if this can be done manually in UEFN? Is it done the same way?