Hi dacello
I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others ", I'll repost your solution in case you'd like to "Accept " the answer.
Issue:
Error when Training Custom Extraction Model via API.
Solution:
I discovered that in my labels.json files, we were passing bounding Boxes as a flat array, rather than an array of arrays. In my case there is only one box per field, which tripped me up, but we need to wrap that box in an array and now I'm able to successfully build a model.
If you have any other questions or are still running into more issues, please let me know. Thank you again for your time and patience throughout this issue.
Please remember to "Accept Answer" if any answer/reply helped, so that others in the community facing similar issues can easily find the solution.
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An accepted answer is the answer that the person who asked the question chooses as the one they think best solves their problem.