Assertion error with IOStore in UE 5.6

When trying to run my packaged application built in UE 5.6 with the IOstore option turned on, I get the following error:

Assertion failed: GDefaultMaterials[Domain] != nullptr [File:D:\build++UE5\Sync\Engine\Source\Runtime\Engine\Private\Materials\Material.cpp] [Line: 606]
Cannot load default material ‘engine-ini:/Script/Engine.Engine.DefaultMaterialName’ [Domain=MD_Surface] from path ‘/Engine/EngineMaterials/WorldGridMaterial.WorldGridMaterial’

However if I turn the IOStore option off and build with just the Pak option the application runs fine.