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Are both Photoshop and Illustrator up to date? You can check in the Creative Cloud Desktop application.
And have you tried restarting your computer?
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Error -1703 was a known issue that requires an update to Mac OS to 12.3.1 or later.
Also go to Mac System preferences and make sure both Photoshop and Illustrator are listed and active under Security & Privacy/Ful Disk Access.