So as you see in the image, when the compression profile is added, the site does not load and displays characters like fe08 in certain places.
In chrome tools I see that some .js files are not being loaded with a 404 error code, but they load fine if I directly go to the application without f5.
Any ideas on what could be happening here?
You may want to try creating a custom http compression profile with specific exclusions for 'Content List' and/or 'URI List'.
You may just need to move it to the exclude list.
I faced a similar issue when we activated some Advanced WAF policies to virtual servers with http compression profiles.