I’m not familiar with the GitHub Action you mentioned, but a license field is required by the version create and version edit endpoints exposed by the AMO API. I took a closer look at the Action’s README and noticed that it seems to be saying that you need to set the license in the GitHub action’s workflow file.
Firefox itself shouldn’t error if you load an extension with a license key in your manifest. My best guess is that AMO is rejecting your submission because addons-linter, which is automatically run against each submission, generates an error for this key.
Yeah, that would make sense. Since this field must be set when creating a new add-on, Developer Hub won’t let you submit the new add-on form without selecting a license.