Can’t Create Child Account – Stuck in Loop After Entering Password

I'm trying to create a child account using the following steps:

Settings → Family → Add Family Member → Create Child Account.

First, I enter the child's first name, last name, and date of birth. Then I tap Create Child Account and then I entered the password of my apple account.

But after I enter the password and hit Next, the screen just loops back to the same password page. It doesn’t proceed or show any error—it just returns me to where I was.

I’ve tried restarting the device and checking my internet connection, but the issue persists. I’m using iphone 14 pro max and 18.5.

Has anyone else faced this issue or found a solution?

Thanks in advance!