Update:

Machine translation from our VAR quoted response they got from DS:

Dassault Systèmes responds --------- 

Regarding the reported phenomenon, when inserting a virtualization component, Because only up to 100 automatically assigned virtual part names are assumed This is a phenomenon that prevents the insertion of a new virtual part of the same virtual part. Check the number in "()" and if there is no space by 100, reproduce. Since it is a name problem, for example, "Copy (100) of "If you change the number in () to 101 etc., you will be able to insert one I know. This is the behavior of the software as-is. 

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They say it is not a bug, but their autonaming, reaching (100) brokes the command.
Workaround: RENAME ALL PARTS TO BE OVER (100) in their name field.

THIS IS NOT A BUG FILE AN ENHANCEMENT REQUEST??😐 



We have a workflow with some template part file that is inserted and edited in context of an assembly to shape it.
I have been able to reproduce it with empty templates.

Create an empty part1.SLDPRT

Create an empty Assem1.SLDASM

From the assy tab insert a component, select part1 and check "Make Virtual", click the PIN mark in the top of the property manager so the command will be repeated.

Click on the screen 100 times.

Copy of Part1^Assem1

Copy (2) of Part1^Assem1

..

Once Copy (100) of Part1^Assem1 is created is no more possible to insert further virtual components derived from part1.SLDPRT

"Failed to Save" and "Drag and drop failed" comes out. 

Inserting the part1.SLDPPRT as normal component first, then trying to virtualize it fails too, but without any kind of error returned

SOLIDWORKS 2023 SP5