Might be worth recreating your Oauth2 App in FME. If that doesn't work, create a new App in Agol (a pain, I know. But if you keep the name the same, then the FME processes using it won't care/notice)

I did what you recommended. I have Fme Server Stage and FME Server Prod (both version 2022.0.1) . On the Fme Server Prod, the token needs to be re-authenticated every 30 minutes but on FME Server Stage the token does not expire and keeps refreshing. Both instance of FME Server have the same configuration. Does anyone know what could be causing the difference?

Thats really weird. Might be worth reaching out to support on that one

Exactly what I did! I appreciate your help!

Just follow-up to my original post - this was resolved. Network changes seemed to have started the problem and then moving some of the automations to the Staging Server brought on other issues. To quickly summarize, we had the network whitelist arcgis.com and also set the policy to 'By Pass Filtering and Authentication' . Then we removed the original AGOL web connection that comes with the FME Server installation. To resolve issues with FME Server's FmeConnection.exe hanging causing issue, we are using 2 AGOL OAuth 2.0 apps - one exclusively for our FME Server Prod and the other exclusively for FME Server Stage. No issues since then!