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”