Recovery contact prompt feels like an endless loop

I keep getting a warning to set up a recovery contact even though I have already done this. Even if I delete my wife's account and try to set it up again, the process just loops and loops. She gets a message but there is no way for her to accept the request (even though she shouldn't have to as she is a part of my Family group). I tried switching to another account (which is my admin account) but there I do not even get a notification that I need to set up a recovery contact at all. I have tried restarting and shutting down and starting up again to see if I can somehow reset the process but I am stuck with the notification on my System Settings icon.

[Re-Titled by Moderator]

When I do delete her as a recovery contact and then try to add her back I get an error message saying that she is already a recovery contact!