On macOS Monterey version 12.6 with the Apple M1 Max chip. Getting the following error when adding our repository to Sourcetree.

'hg status' failed with code 255:'abort: repository requires features unknown to this Mercurial: revlog-compression-zstd (see https://mercurial-scm.org/wiki/MissingRequirement for more information) 

Mercurial works fine through terminal but wont load in Sourcetree. Since this is a missing requirement, I have tried to use the newer mercurial version installed on my system through homebrew.

Mercurial Distributed SCM (version 6.2.3)

However when navigating to where my version of mercurial resides. 

which hg
/opt/homebrew/bin/hg 

Sourcetree from here throws an error and has no selectable files in this path or in the path that homebrew has linked to as well.

Mercurial not found
Mercurial was not found on on your system in the standard locations; the Sourcetree internal version will be used. 

This appears to be a strange issue caused by 12.6. A coworker was able to use our repo in SourceTree on 12.5, once they updated to 12.6 it threw this same error.