System Information
Operating system: Windows-10-10.0.19044-SP0 64 Bits
Graphics card: NVIDIA GeForce RTX 3090/PCIe/SSE2 NVIDIA Corporation 4.5.0 NVIDIA 526.86

Blender Version
Broken: version: 3.3.1, branch: master, commit date: 2022-10-04 18:35, hash: rBb292cfe5a936
Worked: (newest version of Blender that worked as expected)

Short description of error
I want to change the materials (non-destructively) on objects inside a linked collection with a library override, but I can't:

Exact steps for others to reproduce the error

1. Link a collection
2. Use the Object menu to create a library override on the collection (no right-click option in the outliner, weirdly).
3. Select an object in the collection and attempt to make a library override on a material

Result:

Nothing seemingly happens, except for a color change in the theme.

Expected:

I should be able to create a library override and change the material.