I sadly have no more access to the original final fantasy 7, but I wondered about the following:
Yuffie steals all your materia when you go to wutai the first time. But what happens when you sell all your materia before (so you have 0 materia and she cant steal any)? Does she say anything different?
Final Fantasy 7 – Detailed Guide on Yuffie
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Best Answer
This question interested me so I decided to do a run through and avoid picking up any materia. Any that was forced upon me I just "trashed". To my surprise there are no safeguards on materias, I thought I was stuck when Priscilla gave me Shiva but I was able to trash summons too.
So I played through the game without any materia up to the point you get the Tiny Bronco (the earliest you can go to Wutai).
Note: I am playing PS4 version so I have the cheats for unlimited HP/MP and 3x speed, so this was much easier than it would be on the original PS1 version.
Answer
The scene where Yuffie steals your materia is exactly the same, everyone acts like materia was stolen even though I had none at all. Dialog is all the same as if you had had some to steal.
Additional Information
After completing the Yuffie side quest she gives back your materia. This is the MP Absorb materia that you pick up during the "hunt for Yuffie". So technically the dialog for giving back materia makes sense, as there is always at least one material for her to return.
Strange Glitch
During the quest to get my materia back (of lack there of), I was able to somehow get 2x MP Plus materia out of thin air!
I want to start by saying I dont know if this glitch is specific to the Yuffie sidequest, or if its doable elsewhere too. I also dont know if it would happen if I had materia going into the quest or not... I've never found this before. However, it happened during this experiment so I will include it as part of this answer.
Here is what happened to get the glitch to happen...
My best guess at how this glitch was possible...
Overall that was a lot longer answer than I was expecting from this experiment but a very interesting outcome none the less.