Im on Sonoma and fixed mine by deleting the preferences for MediaBay.
BUT that didn’t do it alone. Groove Agent had some trouble rebuilding the database, so I had to wipe the prefs again, and opened Halion standalone and let that complete its first scan. Then going back into Groove Agent, everything was ‘fixed’ after it finished its first scan…
This worked for me, after deleting bothe the server and lib files for the media bay, I then scanned anything in the media bay that I thought had anything to do with groove agent and it worked for me no red no entry signs on kits