I had a bit of a struggle with this; in my case I was able to resolve it (I hope( by first enabling the keychain in the iCloud preferences,, entering passwords (again), logging out of iCloud, rebooting, and then logging back in. While I was trying to log out of iCloud, I ran into a repeated prompt about Photos updating my library. Telling it to basically go ahead and leave anyway led to a message telling me that I'd lose some low-res previews, for which I carted not. That seemed to break the logjam.
However, I did almost get fooled by the whole "unlock code" .vs. "passcode" issue, as I first ran around the house looking for my phone before I re-read the prompt. Annoying.
Dear Apple: This, plus the SNAFU with the "Terms and Conditions" loop has made this the worst macOS update in a long while. I feel like I'm back in the days of 10.3 or so. It's doubly-difficult when you're visually-impaired, as all those prompts and loops are disturbing.