Suppose $X$ is a separated, projective curve, and $Z = V(\mathcal{J})$ (where $\mathcal{J}$ is a nilpotent sheaf of ideals) is a closed subscheme of $X$ with closed immersion $i : Z \to X$.
Is it true that $H^{1}(Z,\mathcal{O}^*_Z) \cong H^{1}(X, i_*\mathcal{O}^*_Z)$ (in a canonical way?).
I stumbled across this in the proof of Liu, Lemma 7.5.11, where he seems to use this to get from the exact sequence $$1 \to 1 + \mathcal{J} \to \mathcal{O}_X^* \to \mathcal{O}_Z^* \to 1$$ the exact sequence of cohomology groups $$\mathcal{O}_X(X)^* \to \mathcal{O}_Z(Z)^* \to H^{1}(X, 1 + \mathcal{J}) \to \text{Pic}(X) \to \text{Pic}(Z) \to 0.$$ (He assumes here that $\mathcal{J}^2 = 0$.)
Now, for a quasi-coherent sheaf $\mathcal{F}$ on $Z$, we have $H^{1}(Z,\mathcal{F}) \cong H^{1}(X, i_*\mathcal{F})$ by Liu, Ex 5.2.3, but to my understanding, $\mathcal{O}_Z^*$ is not quasi-coherent.