I was able to get it to work. They fixed some issues in the February update, and I was told to try again, but I still had no success.
I was getting this error in c:\programdata\azureconnectedmachineagent\log\himds.log:
time="2023-03-01T15:35:15-05:00" level=info msg="Loading AgentConfig file from: C:\ProgramData\AzureConnectedMachineAgent\Config\localconfig.json"
time="2023-03-01T15:35:15-05:00" level=fatal msg="Error reading local configuration file: invalid character '\x00' looking for beginning of value"
I deleted the folder located at C:\ProgramData\AzureConnectedMachineAgent\
Once I did, I was able to successfully install ARC to the problem machines.