NOTE: After hours of searching for a solution to this problem, I stumbled across this method and decided try it out. I already installed/updated the game via the tweaker beforehand so I skipped step 4.(skipped step 6 too.) For step 5 I moved the winstore file into the tweaker folder, then followed the remaining steps in 5. The winstore fix is self automated and will guide you through fixing any issues it encounters.(It only took about 5-7 minutes to complete for me.)
This is the only method that fixed my game making it playable again.
Download Tweaker from http://arks-layer.com/
Install the Tweaker but do not start it yet
Enable Developer mode in windows by following the below steps :
click start then click settings
search "developer" and open "developer settings"
select checkbox to enable developer mode and click apply underneath.
#4 Start Tweaker and tell it "I don't have PSO2 installed" , and that you want the NA version. Choose your folder to put the PHANTASYSTARONLINE2 folder in.
!!!Do not install PSO2 into the ModifiableWindowsApps\pso2_bin\ folder or the Documents folder or Program Files!!!
#5 Once it finishes patching, download this file: https://arks- layer.com/docs/pso2_winstore_fix.ps1. Put it in your PHANTASYSTARONLINE2 folder (not your pso2_bin folder, the one above it!). Right click it and select "Run with powershell". It may prompt you about changing a policy - Just hit Y. Wait until it says "Fixes complete!", then press any key.
#6 Rename your "Program Files\ModifiableWindowsApps\pso2_bin" folder just to make sure it doesn't try to launch from there for some reason.
#7 Click "Start PSO 2" and play the game.
#8 If game runs you can then disable developer mode again.