Apps greyed out after Edge update – Local Network Access prompt

Starting with Microsoft Edge version 143, which introduced the Local Network Access feature, when accessing the Application Workspace URL you may see a prompt stating: ‘[domain] wants to look for and connect to any device on your local network.
If Block is selected, applications in Application Workspace appear greyed out. Selecting Allow resolves the issue and adds the URL to Edge’s allowed list under Privacy, search, and services -> Site permissions -> All permissions -> Local network access.
You can also configure this setting via Intune using a configuration profile. For more details, see Configure Microsoft Edge policy settings with Microsoft Intune and LocalNetworkAccessAllowedForUrls.