I earlier had raised a Windows 365 cloud pc Feedback request about this bug and also reported in Twitter in their Intune Support Team handle. Thanks to the Microsoft Intune Support Team who have took up this issue and fixed it recently.
Microsoft has fixed the error message with the screen capture protection enabled and accessed through browsers.
Now, when you access the cloud pc through browsers, it should show you the below error message properly when screen capture protection is enabled for them.
Thanks once again Microsoft Intune Team π
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