remove tool with network connection notice pop

I'm encountering the same issue when using the remove tool with generative AI turned on.
No matter how big or small the area you want to remove is, the blue bar stalls for around 1-2 minutes, and then an orange box shows: 'Please check your internet connection and try again.'

However, when you turn the generative AI off, it works normally.

Does anyone else have the same problem?

Using Photoshop 27.8.0 on Apple M1 Max 64gb Ram.