PDSls uses @atcute/identity to parse DID documents. With version 2.0.2, Bazaar’s current document fails validation at the inline object in its @context array. Removing only that object makes validation pass; no PDS or signing-key changes are needed.

DID Core permits objects in @context arrays, while Bluesky’s reference parser also restricts those entries to strings. This demonstrates a compatibility limitation, without establishing why the restriction exists.

Reproduction, using Bun:

bun -e '
import { defs } from "@atcute/identity@2.0.2";
import { safeParse } from "valibot@1.4.2";

const doc = await fetch("https://bazaar.whereditgo.diamonds/.well-known/did.json").then(r => r.json());
const before = safeParse(defs.didDocument, doc);
console.log("Original:", before.success, before.issues?.[0].message);

doc["@context"] = doc["@context"].filter(x => typeof x === "string");
console.log("Without context object:", safeParse(defs.didDocument, doc).success);
'

Observed output:

Original: false Invalid type: Expected string but received Object
Without context object: true

This tests document parsing, not receipt-signature validity. The result may change if the live document changes.