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I've seen various solutions to this problem and tried almost all. I've updated and reinstalled my drivers, disabled the sniffer, reinstalled Photoshop itself, and updated Windows. The "use graphics processor" box is grayed out and displays the titular error message. The notable effects of this for me are reduced image quality (more pixellated) and the zoom tool has no animation and is choppy. I can find no other places indicating the driver is malfunctioning.
This is a log from the sniffer: https://pastebin.com/2bGUHmvR
Windows 10 20H2
GPU: AMD Radeon R6, driver version 21.3.2 (latest wide release)
CPU: AMD A10-7300 Radeon R6, 10 Compute Cores 4C+6G 8GB
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The Radeon R6 is not compatible with the latest versions of Photoshop.
https://helpx.adobe.com/photoshop/kb/photoshop-cc-gpu-card-faq.html