Hi @DTS Engineer (again),
Just a quick follow-up: I've added a comment to my Feedback (FB22182640) with a deep dive into the AuthKit logs from the sysdiagnose.
It looks like a server-side silent failure. The /delete endpoint successfully returns HTTP 200, but the authorizedAppListVersion hash remains completely unchanged in the subsequent APS pushes. Because the state never changes on the server, akd fails locally with errSecItemNotFound (-25300).
The full details and specific transaction IDs are in the feedback ticket. Hope this helps speed up the investigation on your end!