If via the Catalog pane, you drag a feature class from a SQLite source directly onto your map, the extent will automatically zoom appropriately to surround all the features within that feature class, as expected.
If however, you then save that new layer as a .lyrx file and drag that layer onto a map, the extent zooms out to the full extent of the world map. So if your features are specifically in one country, they'd be incredibly small by default and you have to zoom to find them. Even right-clicking the layer and pressing 'Zoom to Layer' zooms to the full world map extent.
My layer was initially setup to source from a geodatabase but I changed it to a new SQLite source. It worked fine with the geodatabase source but now doesn't for SQLite.
I am wondering if it's a bug from ArcGIS Pro or is a SQLite issue? Or is there a way to change the default extent of a layer file (.lyrx)? This isn't very good if giving layer files to clients.