This bug report is tightly connected to the behaviour exhibited by FMOD described here (FMOD keeps hanging (macOS Big Sur)). When I wrote that forum post I didn’t know what was causing it, but now that I do I thought it might be useful to report it as a bug.
If FMOD Studio on macOS is unable to run the PAC script in the backend, it will:
A. Post this error line on the log file (! 2022-01-21 12:38:11 Execution of PAC script at “http://wpad/wpad.dat” failed: The operation couldn’t be completed. (NSURLErrorDomain error -1001.) [#3 times])
B. Stall, make unresponsive, “beachball” the whole interface from an undetermined amount of time.
In my case, some university IT settings were preventing FMOD from running the script and thus this happened. However, even though mine is a very specific case, FMOD should be able to handle this kind of error without stalling the interface. Especially because if the internet connection is disabled, the bug disappears and FMOD runs offline without any hiccups.
Please do let me know if you need any additional information or log files. Even though I have found a workaround, I should still be able to reproduce the bug on my machine.