MacOS Proxy Issue

Same issue here.
If I am not logged in to my work VPN, I can log in and synch works.
As soon as I am connected to my VPN it stops synching and if I force a logout/login, I can't log back in anymore.

In the log I find these errors entries (just starting 1password already logged in):
ERROR 2022-07-05T13:28:16.460 tokio-runtime-worker(ThreadId(7)) [1P:foundation/op-proxy/src/lib.rs:245] proxy test network connection failed: error sending request for url (): error trying to connect: tls handshake eof
INFO 2022-07-05T13:28:16.460 tokio-runtime-worker(ThreadId(7)) [1P:foundation/op-proxy/src/apple.rs:329] skipping proxy returned by PAC since we couldn't connect to it: Network(Network(error sending request for url (): error trying to connect: tls handshake eof))

Interestingly launching from the terminal with no proxy variables has the same outcome.
However if I set manually https_proxy to what my work PAC would return, it works.