Error Response: There may be a problem reading the system software or application data

Solution: The format holder recommends updating the PS5 to the latest system software, so if you haven’t already done so, you should try it right away. Unplug your PS5 and plug it back. To turn on the PS5 into Safe mode, Press and Hold down the power button on the Playstation 5, until the console beeps twice. Connect your controller with a cable and select "Rebuild Database". If this doesn't solve your problem, try contacting Sony directly or a video game repair shop for further help. Please post below if you were able to solve the issue yourself to help others.