I've tried adding an app sandbox to the app but the error still persists.
Excellent. No matter if you error is there or not, you need a Sandbox, so that is good.
Is he saying that the error message im seeing is normal? Considering my app runs on macos
Right, so what Quinn is pointing out here is along the lines with what I had mentioned, but in just greater detail: "This issue for application groups will not cause a code signing crash or failure." Which aligns with what you mentioned, "Its weird because the extension loads fine and the content filter works." Now, you may not be able to use your app groups in macOS if your groups are defined incorrectly or are not configured like the example Quinn has. That is why I mentioned you should resolve this, "before you sign, Notarize, and distribute your app."
Matt Eaton
DTS Engineering, CoreOS
meaton3@apple.com