This issue, where your iPad prompts you to accept the iCloud Terms and Conditions but then says "action cannot be completed at this time," can be common. Since your iPad is already running the latest version of iPadOS, the problem likely isn’t due to needing a software update. Instead, it’s usually a possible glitch between your device and Apple’s servers.
One of the simplest fixes is to try accepting the Terms and Conditions on another device that's signed in with the same Apple ID. If you have an iPhone, Mac, or another iPad, go to Settings > [Your Name] > iCloud on that device. If prompted, accept the terms there. This often resolves the issue on the original device as well.
You can also try using a browser. Go to iCloud.com and sign in with your Apple ID. Sometimes, you’ll be prompted to accept the Terms and Conditions directly on the website. Once accepted, restart your iPad and see if the issue clears up.
If that doesn’t work, another option is to sign out of iCloud on the iPad and sign back in. Before doing this, make sure all your important iCloud data—like photos, contacts, and notes—is safely backed up. Signing out may remove iCloud content temporarily from your device. To do this, go to Settings > [Your Name], scroll down, and tap Sign Out. After restarting the device, sign in again and check if the prompt appears properly.
It’s also worth checking Apple’s System Status page at Apple System Status. If iCloud Account & Sign In or Apple ID services are having problems, that could explain the issue.
You can also try resetting your network settings, which can clear up any connectivity issues that might be preventing communication with Apple’s servers. To do this, go to Settings > General > Transfer or Reset iPad > Reset > Reset Network Settings. Keep in mind this will erase your saved Wi-Fi passwords.
As a final troubleshooting step, force restarting your iPad can help. If your iPad has a Home button, press and hold the Home and Top (Power) buttons until the Apple logo appears. If your iPad uses Face ID, press and quickly release the Volume Up button, then the Volume Down button, and finally hold the Top button until the device restarts.
If none of these methods work, your best option is to contact Apple Support at Apple’s support site. Select Apple ID > iCloud > Unable to sign in/accept Terms and follow the prompts to get assistance. Let me know if you’d like help preparing a message for support or backing up your iCloud data before signing out.