Cannot install SPFX package using Site Scripts

Question

We've noticed that for starting from July 19 2019, we can no longer install SPFX packages using Site Design. Here is the very minimum sample that replicates the issue:

siteDesign.json

{
    "$schema": "schema.json",
    "actions": [
        {
            "verb": "installSolution",
            "id": "{AppPackageId:ContosoCentral}"
        }        
    ],
    "version": 1
  }

Error message:

SPFX package is deployed to the App Catalog with no errors:

Installing the SPFX app without Site Designs works perfectly fine:

Questions

• Does anyone have the same issue? Please, reply in comments.
• Main question: Is there a workaround for this? Anything we can do to solve it?
• Is there a way to get more information about the error? Install SPFX Solution: Something went wrong and we could not complete this action sounds awefully unhelpful.

Any help will be greatly appreciated!

Update

I've found related issue in GitHub: Cannot Install SPFx Solution or Activate Custom Feature using a Site Design #3543, but I don't see any resolutions.

Update 2. Quick replication steps

You can try to replicate it by using any SPFX package:

• Install SPFx package to the App Catalog. Let's call it "ContosoApp".
• Run the following PnP script to add a new site design

Connect-PnPOnline -Url https://contoso.sharepoint.com/sites/CommunicationSite 
Add-PnPSiteScript -Title "Sample-Site-Script" -Description "Sample Site Script that demonstrates an issue" -Content "{ `"$schema`": `"schema.json`", `"actions`": [ { `"verb`": `"installSolution`", `"id`": `"{AppPackageId:ContosoApp}`" } ], `"version`": 1 }`""
$siteScript = Get-PnPSiteScript | Where-Object {$_.Title -eq "Sample-Site-Script"}
Add-PnPSiteDesign -Title "Sample-Site-Design" -Description "Sample Site Design that demonstrates an issue" -SiteScriptIds $siteScript.Id -WebTemplate CommunicationSite

• Apply site Design to the site via the UI: