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Through additional testing, I have been able to confirm that the bug occurs for nations other than Japan.

Specifically, the bug seems to occur if you are unemployed and apply for a job at an international youth team through the job centre.

I experienced exactly the same bug when I created an unemployed manager and applied for the Mongolia U19s job.

I don't know if the bug affects all International youth teams or only ones at certain levels such as U19s.

Edit:

The bug also occurred when I applied for the Colombia U20s job with an unemployed manager through the job centre.

I would assume that this bug affects all International youth teams whose jobs are applied for through the youth centre.

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27 minutes ago, Neil Brock said:

Japanese national teams (be it senior or youth) cannot be selected by default, there would need to be modifications on the game in order to do so. 

Feel free to create a new game with no custom content yourself. You'll see that the Japanese senior teams and youth teams are manageable. As long as there are enough players for selection in the game, you can manage ANY national team including Japan. This has always been the case, despite your claim that it isn't possible.

Trust me on this, I have been playing FM since 1994 and have done a journeyman save every year for the last 20 years!

I outlined a bunch of steps I performed in this thread where I isolated the problem. The problem specifically occurs when you start as unemployed and apply for the Japan U19 job, which is one of the available international jobs at the start of the game.

I have no idea why the problem doesn't occur if you take control of Japan U19s when you add a new manager to the game. I don't have the tools available to me to figure out exactly what is causing the problem. This is one for the QI team to solve. I've done as much as I can.

I have also uploaded a file titled BugTest7.fm to OpenCloud.

Again, feel free to check this file out yourself. You'll see that there are no custom databases whatsoever. I even disabled SI's Gibraltar one for that save, so that the problem couldn't be blamed on that.

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On 24/12/2021 at 18:39, Kyle Brown said:

I'm afraid this will be an issue with your custom database rather than something we can fix with an update - Japan isn't a playable nation on the vanilla database due to licensing constraints unfortunately.

There are no custom databases. I am managing Japan U19s.

National teams of nations can still be managed, provided there are enough players, without having the nation's leagues loaded.

SI has not prevented the Japanese national team from being managed.