There are no guarantees of compatibility with anything when using subfolder. It’s an advanced installation and very little is tested against it.
You could use a different subdomain for your discourse installation. SSO will work between subdomains.
The top of the subfolder guide contains this text:
You need to move back to tests-passed to be in a remotely supportable state, assuming your database isn’t just broken now. Rolling back a version is wholly unsupported.