I just ran into this a couple days ago myself. I was setting up an old Pixel 3a as a backup phone and although I was able to start adding an American card to Wallet, I got a similar non-specific error when trying to confirm it. My Google account is a bit geographically confused, so I thought it was just a me problem but I guess not.

Apple Pay works fine--all my non-Indian cards are still functional, and my transit cards are still there as well. At some point it did remove my American driver's license even though it's years from expiration, though.