Testflight Arcade Mac App failing Fairplay DRM on specific machines

Hi, I have an issue with some Apple Arcade Apps, which are failing the initial DRM test on specific machines and is blocking our testing. The situation is:

We have 2 Mac apps, developed by different teams with different engines: App1: Developed in custom C++/Objective-C engine App2: Developed in Unity

Machines

1. Macbook Air M1 (12.3.1)
2. Macbook Pro I7 (12.4)
3. Mac Studio M1 Max (12.4)

The same version of each app was installed from Testlight on each of the machines. But they only run on machine 1, the Macbook air. Both apps fail to start on the other two machines with the exact same error on the console.

- [Arcade/com.some.bundle/62D58BBA] Arcade fairplay recovery complete with result: 1 elapsedTime: 2.149383
- [Arcade/com.some.bundle/62D58BBA] Unable to relaunch due to error: Error Domain=ASDErrorDomain Code=506 "Launching too fast, throttling request" UserInfo={NSDebugDescription=Launching too fast, throttling request}
- [Arcade] Repair for bundlePath: /Applications/App Name.app complete with result: 0

These three machines are siting on my desk, but the same issue is happening to our QA team, where some people can run the app and some others can't.

I tried reinstalling, removing AppStore cache, restart the machine, etc, etc. Is there any known solution for this problem? Could this be an issue with 12.4? Any guidance is appreciated.

Thanks!