This is a known issue: https://issuetracker.google.com/issues/63253097
Further to my question about getting Google KMS working with App
I am a fulltime engineer working on dev_appserver.
This log message is reported from /google/appengine/tools/devappserver2/python/stubs.py, in the method log_access_check_fail
We added this log message to remind users of dev_appserver's behavior of blocking file access.
Recommended workaround: dev_appserver.py --log_level warning
--log_level sets the log level in local python runtime process. The log_access_check_fail() is set to INFO and would not be logged. NOTE, this flag will also prevent other INFO level logging in your application.
Meanwhile, we are working on a fix to this log_access_check_fail method. It could be lowering log_access_check_fail() logging level to DEBUG.