When you receive inventory, you select the product type to represent what type of inventory it is, such as seeds, distilled oil, etc., along with the variety.
Any lots created from that received inventory will inherit the product type as its unit of measure. For example, if the received inventory's product type is "Extract (Gummies)", then the lot's unit of measure will be "g Extract (Gummies)". The variety is also inherited.
Only SKUs with the same unit of measure and variety as the lot can be assigned to a lot item created from that lot. See the example below. Even if the lot came from a batch, the idea is the same. The lot inherits its unit of measure and variety from the batch.