“Uploading custom apps is not allowed” When Installing Microsoft Teams Sample App
I had the same problem and it actually made me crazy especially because it may take a few hours to apply changes. Finally I was able to resolve the problem in the following way. I can imagine that certain steps are unnecessary but who knows.
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By following instructions in the Manage app setup policies in Microsoft Teams, enable “Upload custom apps” in “Global (Org-wide default)”.
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Following same instructions created a custom setup policy with enabled “Upload custom apps”.
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Enable all permissions in “Global (Org-wide default)” as described in the Manage app permission policies in Microsoft Teams
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Create a new permission policy with everything enabled.
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Wait about an hour.
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Assign these new policies to the user.
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Make sure that everything what is mentioned in Manage custom app policies and settings in Microsoft Teams is enabled.
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Wait another hour.
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Quit desktop application, and start it again.
Now, finally, it works.