Able to create recursive blocks in Layout Builder

Good catch @KimD1. This is a big issue it will take the site into a loop and in the end 502 errors happen. I am looking for a way to disable or hide the current editing block type on the layout builder while using the create content block.

A Merge Request has been opened to resolve this issue.
While reproducing this issue, found one more approach from where this issue can be faced.
Steps:

1. Add a custom block using block type
2. Then update the layout of the same block type and select the custom block created in step 1.

This will create the same issue, not able to update the layout again until layout settings are deleted.

Will require test coverage.

Hello!

This issue is a duplicate of #2976152: Don't allow placing a Custom Block in the layout override for itself or a default layout → which also has a lot of discussion around the history of this and some working patches. I recommend we keep working moving forward there, so I'm marking this one as closed.

Thanks for raising an issue!