Here is what PAN says:
"This is caused by a new feature enabled in 8.3, where we check the signature level of every DLL loaded into cytray.exe. The application's DLL must be unsigned or with a lower trusted level, which will result in the DLL being blocked by us and this pop-up to show. hence we have provided the SUEX to disable the feature."
"At the moment the engineering team does not consider this issue as an actual bug inside the product, but rather a by-design behavior."
"I would like to inform you that it might be fixed in the upcoming version of the XDR Agent, but we do not have an ETA for this."
The error isn't intentional, thats them messing up by not setting OS Error mode correctly for their process.
Silently failing is one thing, failing with a prompt like that is a mistake. The same mistake Microsoft made with MS remote assistance app for a while when they set the process to block third party dlls. They did eventually fix that.
I would encourage all the users impacted by this to complain loudly to them so they realise what they have done and make resolving it more of a priority.