Validation error on Verse files under /sys/public folder that are giving asset identification errors.

Summary

I’m facing a blocking issue with a project after the 35.00 update. I’m unable to launch a session because project validation fails due to Verse files located under /sys/published.

The errors are asset identification issues (Error 3506). I have never seen this error show from verse files located under /sys/. I was not even aware there was a copy of the published verse contents there..

What I have tried before re-validating:
Deleting Assets.digest.verse
Deleting DerivedDataCache
Deleting the sys folder
Deleting and re-syncing the whole project

Please select what you are reporting on:

Verse

What Type of Bug are you experiencing?

Verse

Steps to Reproduce

I don’t know how to reproduce.

Expected Result

Previously, the project would validate.

Observed Result

With no changes from the last update, the project is not validating.

Platform(s)

Windows 11