The earliest recollection of this bug is traced back to PAN-OS 10.1.9 - February 19, 2025.
This bug is fixed in PAN-OS versions 10.2.3, 10.1.9.
Fixed an issue where the firewall device server failed to resolve URL cloud FQDNs, which interrupted URL category lookup.
For more information:
https://docs.paloaltonetworks.com/pan-os/10-1/pan-os-release-notes/pan-os-10-1-9-known-and-addressed-issues/pan-os-10-1-9-addressed-issues
https://docs.paloaltonetworks.com/pan-os/10-2/pan-os-release-notes/pan-os-10-2-3-known-and-addressed-issues/pan-os-10-2-3-addressed-issues