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What happens when you drag a GameObject from the Hierarchy to the Assets folder?

It creates a prefab

When you drag a GameObject from the Hierarchy to the Assets folder, it creates a prefab. A prefab in Unity functions as a reusable GameObject template. By transforming a GameObject into a prefab, you enable easy instantiation of that GameObject, along with all its components, properties, and child GameObjects, throughout your project. This is particularly useful for managing multiple instances of the same object, such as enemies or items, without needing to set them up from scratch each time.

The prefab allows you to edit the original model, and those changes can be propagated to all instances of that prefab in the scene. This facilitates efficient game development by maintaining consistent design and behavior across multiple reuse instances.

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It duplicates the GameObject

It deletes the original GameObject

It converts the GameObject to a script

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