Answer
This has been resolved by patching the underlying Oracle Database version itself (one confirmed case went from Oracle 19.3 to 19.18) — the error traces to Oracle's own JSON_OBJECT() handling of the UDT/CLOB return type at that specific patch level, not to anything in the IFS Cloud upgrade content itself. If you hit this exact error on a 23R1 upgrade with no customizations, check your Oracle Database's patch level against the minimum required for that IFS Cloud release, and apply the necessary Oracle Database patch rather than looking for an IFS-side workaround.