Loading of unpacked extensions is disabled by the administrator

We are having an issue in our locked down environment with the katalon chrome extension. We have allowed the katalon recorder and Selenium IDE extensions through group policy (both whitelist and force). We have to keep the group policy for extensioninstallblacklist due to company restrictions. When this policy is removed we do not receive the “Loading of unpacked extensions is disabled by the administrator” error…but that will not work for our environment. Does anyone have experience with this they can shed some light on for us?
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I really don’t know if this can be circumvented by Desired Capabilities, but in the absence of any better help, you could give this tip a read:

Our Company shares a similar fate.

We wrote an bug-ticket on Github:

Current Result: Katalon Studio v7.4.0 can’t execute chrome extensions in Google Chrome v83, when there is an active whitelist. You need to wait for an newer Version which supports it.

Cause: chrome extensions are loaded local from a folder (unpacked).
In comparison the Firefox extension is working (packed and signed).

I would recommend to leave this thread as it is and write an comment on the bug-ticket above too.
That should increase the significance of this error better an should lead to an accelerated resolution.

Hi everyone,

The issue of loading unpacked extensions on Spy, Record, Smart Wait features is currently resolved by Katalon Compact Utility.
Please find its information here: https://docs.katalon.com/katalon-studio/docs/katalon-compact-utility.html#configuring-and-using-katalon-compact-utility-with-chrome-profile.

Thank you all for your attention,
Nam Nguyen.