‘Access Denied’ error when opening Photoshop 2023

This error message appears in most of the 'big' Adobe apps, including Photoshop, Illustrator, Premiere, etc. but I couldn't find a better place to post it.

My school has the full Creative Cloud suite on many devices, with Shared Device licensing, which are set to auto update, and some have been recently been receiving the update to 2023.

When these apps now open, they load correctly, but then come up with a smaller window over the top, simply saying 'access denied'. As far as I can tell, this is to do with Cloud Sync, which isn't part of the Shared Device Licensing, and not something we want to use anyway.

The window can be closed, and everything works fine in the apps, it's just annoying and confusing for the users.

This only occurs when users log in to the softwares with their single-sign-on / federated ID, which doesn't have cloud sync capabilities (as mentioned above). If they sign in with a personal Adobe account, which has 2gb of cloud sync, there's no error.

I did initiate a chat session with Adobe but, as usual, it was difficult to try to get them to understand what I was talking about 😞

They blamed our federated ID settings, but there is nothing wrong with our settings and the 2022 versions of the apps, that haven't updated yet, work without the error.

I feel like something has been overlooked, and needs to be fixed, but I'd be happy with a suggestion of a workaround to suppress the error. I'd also be interested if anyone else has encountered the same issue.