This was a tough one. Encountered with Xverse wallet Chrome extension and MagicEden.io and Magisat.io
Here’s the fix:
https://github.com/paulmillr/scure-btc-signer/issues/66
Transaction/output: unknown output script type, there is a chance that input is unspendable. Pass allowUnknownOutputs=true, if you sure
Another version of this error is:
“Transaction/output: unknown output script type, there is a chance that input is unspendable. Pass allowUnknownScript=true, if you sure”