Now in Unity we can use nested prefabs. It is a new system for creation templated entities. Main different between the new and the old prefab system it is opportunity for mixing prefabs without merging. For example in the old system: We have two prefabs: the door and the wall. And we want create the room template with the door and the wall. When we place the two prefabs as childs of the room, and create the prefab from the room object, we will break connections between the door on the scene and the door prefab. And in the new system: When we have two prefabs and want create the third based on the first and the second, we save connections. If we will create the room prefab based on the door prefab, and make changes in the door prefab, we will have changes in all rooms. In addition, as you have already noticed, the new system allow us edit prefabs in a special mode, which is incredibly convenient and allows doing without a new empty scene for adjusting
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