I like this conceptually and am keen to try it out. My biggest question mark is around how we are creating a new mental model when you think about block connections. In this case, folks will see the connected icon and the block icon in different parts of the editing experience rather than just one unified option (connected icon). I also worry a bit that we're conflating mental models in that typically when items are purple, like a synced pattern or template part, that's because we're (trying) to communicate that it will be updated everywhere. In this case, we're saying the opposite: this block can be edited because of overrides and will be custom just to this instance of the pattern.

Found this a11y issue related to the connections icon. Let's avoid the same problem: #60810