PnP Provisioning engine error: Invoke-PnPSiteTemplate : Error applying default column values

Hello all,

I'm trying to apply a template to a brand new SPO site but I'm getting the following error: Invoke-PnPSiteTemplate : Error applying default column values.

I set PnPTraceLog before calling Invoke-PnPSiteTemplate and inside I see the following error:
powershell.exe Error: 0 : 2024-02-05 14:09:31.4856 [PnP.Framework] [0] [Error] ExecuteQuery threw following exception: Microsoft.SharePoint.Client.ServerException: This library does not accept files of the given type. You must either upload a new, unprotected file that supports rights management or re-upload a document that was previously downloaded from this library. at Microsoft.SharePoint.Client.ClientRequest.ProcessResponseStream(Stream responseStream) at Microsoft.SharePoint.Client.ClientRequest.ProcessResponse() at Microsoft.SharePoint.Client.ClientRequest.<ExecuteQueryToServerAsync>d__53.MoveNext() --- End of stack trace from previous location where exception was thrown --- at System.Runtime.ExceptionServices.ExceptionDispatchInfo.Throw() at System.Runtime.CompilerServices.TaskAwaiter.HandleNonSuccessAndDebuggerNotification(Task task) at Microsoft.SharePoint.Client.ClientRequest.<ExecuteQueryAsync>d__39.MoveNext() --- End of stack trace from previous location where exception was thrown --- at System.Runtime.ExceptionServices.ExceptionDispatchInfo.Throw() at System.Runtime.CompilerServices.TaskAwaiter.HandleNonSuccessAndDebuggerNotification(Task task) at Microsoft.SharePoint.Client.ClientRuntimeContext.<ExecuteQueryAsync>d__65.MoveNext() --- End of stack trace from previous location where exception was thrown --- at System.Runtime.ExceptionServices.ExceptionDispatchInfo.Throw() at System.Runtime.CompilerServices.TaskAwaiter.HandleNonSuccessAndDebuggerNotification(Task task) at Microsoft.SharePoint.Client.ClientContext.<ExecuteQueryAsync>d__28.MoveNext() --- End of stack trace from previous location where exception was thrown --- at System.Runtime.ExceptionServices.ExceptionDispatchInfo.Throw() at Microsoft.SharePoint.Client.ClientContextExtensions.<ExecuteQueryImplementation>d__6.MoveNext() ServerErrorCode: -2130575176 ServerErrorTypeName: Microsoft.SharePoint.SPException ServerErrorTraceCorrelationId: 72bc08a1-a030-8000-2ef3-f0a82aac2b91 ServerErrorValue: ServerErrorDetails: . 0ms

I'm really confused because the two error messages are completely different. I have couple of libraries and list with IRM enabled but could not suspect any of them to be faulty.

Appreciate any help on this issue.

Thank you.

The report names Invoke-PnPSiteTemplate, PnPTraceLog, default column values, and IRM-enabled libraries and lists, but no source file or test. Start by reproducing the failure on a new SharePoint Online site and narrowing it to the affected library, list, or template operation. Done means the cause of the conflicting errors is isolated and a confirmed remediation or actionable reproduction is documented.