Apple, I submitted a feedback form with the sysdiagnose in March 2022 with this specific error and haven't heard back since then. This is really disappointing.

We decided to ditch the App Clip because of this issue. Sorry Apple but you've got to get your act together in solving this issue for our company to come back to it.

I want to echo the complaints the about this error that others have mentioned. We make digital menus for restaurants where their customers would scan to access the restaurant's menu. There are several reports that there are some patrons that cannot access the App Clip (that's free) and blocks them from accessing the app clip and viewing the restaurant's menu with the exact error message in the original post. This is affecting our end customer and makes it really frustrating for them which in effect risks us losing some business. Is there a plan to fix this? If not, we are considering removing the app clip from our app because of this edge case and sticking to the web app we have.