The earliest recollection of this bug is traced back to PAN-OS 10.1.0 - February 19, 2025.
This bug is fixed in PAN-OS versions 10.1.1.
Fixed an issue where SaaS Policy Recommendation didnât work on firewalls because the SaaS Security Inline policy recommendation license check failed.
SaaS Policy Recommendation does not work on firewalls because the SaaS Security Inline policy recommendation license check fails. When this occurs, the bottom ribbon on Device Policy Recommendation SaaS displays the message SaaS Security license is required for feature to function in red text. On Panorama, the SaaS Inline Security column in Panorama Device Deployment Licenses shows that the SaaS Security Inline license is not present on the managed firewall. Workaround : If Panorama manages the firewall, use Panorama to import SaaS policy recommendations and then push them to the firewall.
For more information:
https://docs.paloaltonetworks.com/pan-os/10-1/pan-os-release-notes/pan-os-10-1-0-known-and-addressed-issues/pan-os-10-1-0-known-issues
https://docs.paloaltonetworks.com/pan-os/10-1/pan-os-release-notes/pan-os-10-1-1-known-and-addressed-issues/pan-os-10-1-1-addressed-issues