Allied races are variants of existing races. The Void Elves are a version of Night Elves, while the Highmount Tauren are, you guessed it, a version of the Tauren. Four allied races are already in the game before launch and two more, the Dark Iron Dwarves and Mag’har Orcs, were added after Battle for Azeroth launched. Each Allied Race has its own racial abilities. You can also unlock a heritage armor set by leveling any Allied Race to the level cap.
As of Patch 2.3, if you get a message "Interface action failed because of an AddOn", this means that an AddOn interfered with the Blizzard UI in some way. To diagnose this, enter the following into chat "/console taintLog 1" and restart the game and try to reproduce it. If you reproduce it, you can quit the game and search through the file Logs\taint.log for the word "blocked" and mail the log to the author of the AddOn listed there. Once you have done this you can turn off logging by entering the following into chat "/console taintLog 0"