Thanks for the report. I’m not sure why allowing first would help, since it seems like you wouldn’t get as far as the reported error if it wasn’t allowed. But glad that it’s working for you now…
In any case, the context here is that macOS 27 is introducing a new disk imaging subsystem, and Apple wants everyone to switch from the old one to the new one. I plan to do this with DropDMG 4. The old system is still fully supported but will show warnings to remind people to switch. However, the warnings are not supposed to be errors, so they shouldn’t be interfering with what DropDMG does. If you find otherwise, please let me know.