Hi
Can you help provide us the entire diagnostic report on this forum post?
Meanwhile, can you please try the following steps and see disabling the build-in SC support on Mac would help?
1. Login as local admin
2. Bring up terminal (which you can search "terminal" to get it)
3. In the terminal session, please copy and paste the below command exactly (or you can type for it):
sudo defaults write /Library/Preferences/com.apple.security.smartcard DisabledTokens -array
com.apple.CryptoTokenKit.pivtoken
4. After that it should be disabled. Which you can logout and try again.
Please keep us posted with the result or any update. Thank you!
BR,
Ivan