Enabling Xray DC compatible JQL Functions fails with "Error updating feature settings"

In some Jira Cloud sites, enabling the "Xray DC compatible JQL Functions" toggle in Xray global settings fails. The toggle is not turned on, and the following error message is displayed:

"Error updating feature settings"

Steps to reproduce

1. Go to Jira Settings > Marketplace apps > Xray Settings > Features.
2. Turn on "Xray DC compatible JQL Functions".
3. The error message "Error updating feature settings" is displayed.

Expected result
The toggle is enabled and the DC compatible JQL functions become available.

Actual result
The request fails, the toggle stays off, and the DC compatible JQL functions are not enabled.

Affected sites
Reproduced on multiple Jira Cloud sites.