Hello ke4yal,
The link here can help provide some steps for disabling Lost Mode on the AirTag: Mark an AirTag or other item as lost in Find My on iPhone - Apple Support
Turn off Lost Mode for an item
When you find your lost item, turn off Lost Mode.
1. Tap Items at the bottom of the screen, then tap the name of the item.
2. Under Lost Mode, tap Enabled.
3. Tap Turn Off Lost Mode, then tap Turn Off.
Be sure to try connecting the device you're using to a different connection, such as another Wi-Fi network, to rule out issues with the current one. If you're using any VPNs or other security/networking apps, try temporarily uninstalling these to rule out conflicts.
Cheers.