API calls to this blog have been disabled

Hi, I am having issue connecting to?https://public-api.wordpress.com/rest/v1.1/sites/$site/posts?after creating a blank WordPress site and downloading + connecting to JetPack.

The site also says I am running on a staging server when created a new site.

When I try to access the api, I receive

{
“error”: “unauthorized”,
“message”: “API calls to this blog have been disabled.”
}

I have tried following:
1. checked the Xml-RPC file, it is accessible and gives: “XML-RPC server accepts POST requests only.”
2. deactivated all plugins
3. disconnected Jetpack
4. deactivated Jetpack and reactivated

However, I still receive the error:

{
“error”: “unauthorized”,
“message”: “API calls to this blog have been disabled.”
}

What could be the issue? Any support would be very appreciated.

Thanks,
Yuri

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