I turned on logging for Windows App and re-enabled the macOS Firewall. Immediately got the error and see this in the logs:
RDPSECURITYFILTER(ERR): Disconnecting with disconnect reason: SSL_ERR_DECRYPTION_FAILED
/Users/runner/work/1/s/source/stack/libtermsrv/rdp/LegacyXPlat/Filters/SSL/SslFilter.cpp(791): DisconnectWithErrorCode()
E|2024-10-09 16:52:21.8990 -05:00|:0 {c704aeb6-bbfe-4e20-8597-aa78148e0000} <0x16f8d3000> RDPSECURITYFILTER(ERR): Caught a TLSFilterException during send or receive: SSL_read failed with Decryption (or bad MAC) error. error:0A000119:SSL routines::decryption failed or bad record mac . ErrorCode: DecryptionFailed
The macOS Firewall does appear to be the cause of the issue.