Proxmox update without subscription keeps throwing a 401 Unauthorized error because the enterprise repo is still enabled. You need to edit two files: /etc/apt/sources.list.d/pve-enterprise.list and /etc/apt/sources.list. Here’s the exact fix.

Disable the enterprise repo
The enterprise repo is enabled by default on a fresh install. That’s what causes the 401 error when you run apt update without a subscription. Open /etc/apt/sources.list.d/pve-enterprise.list and comment out the line:
# deb https://enterprise.proxmox.com/debian/pve bookworm pve-enterprise
Just add a # at the start. That’s it. Now the repo won’t be queried and the 401 goes away.
Add the no-subscription repo
Next, add the no-subscription repo to /etc/apt/sources.list. If you’re on Proxmox VE 8 (bookworm), add this line:
deb http://download.proxmox.com/debian/pve bookworm pve-no-subscription
If you’re on an older version, replace bookworm with bullseye or buster. Check your version with cat /etc/os-release if you’re not sure.

Update and upgrade
Now run:
apt update && apt dist-upgrade
That should pull updates from the no-subscription repo without any 401 errors. If you still see an error, make sure you didn’t miss a second enterprise repo file. Sometimes there’s one in /etc/apt/sources.list.d/ with a different name, like pve-enterprise.list.disabled. Just comment out any line that mentions enterprise.proxmox.com.
My take
This is a stupid default. Proxmox ships with the enterprise repo enabled even though most home users don’t have a subscription. They should make it opt-in or at least show a clear warning. But it’s a two-minute fix, so whatever. Just remember to do it on every new install.
If you’re setting up backups after updating, check out Proxmox Backup to Empty Partition for a quick way to get vzdump working.