Interesting finding again, with this function. Tried running:
arcpy.MakeFeatureLayer_management(fc,"cmpl","Material IN ('CMP',' CMP')")
arcpy.CalculateField_management("cmpl","Pipe_Material","'CMP'")
on some sde data unversioned (so no need to start an edit session). It wouldn't run the calculate without error. I had to add what they say is an optional parameter, expression_type: "PYTHON_9.3" to make it run.