Keep getting "Update Apple ID Settings" and can't seem to enable keychain in icloud

You have to contact apple support senior advisors https://support.apple.com/en-in/HT201232

As per my knowledge an iPhone and your Mac is to be signed in with same Apple ID and password on the same network , both have to be used to reset the keychain of Mac ( without resetting the keychain of Mac or erasing the hard drive and reinstalling Mac OS ) , the steps will be very lengthy and complicated , I never tried this method but apple support will help you .

If you are successful in setting up keychain , write down each step and post back here so that we members will learn the method and it would be very helpful for others reading it .

Note : once 2FA is turned on it can't be deactivated in Mac OS catalina .

See the article https://support.apple.com/en-in/guide/mac-help/mchl3f671010/10.14/mac/10.14

You have to activate safe mode https://support.apple.com/en-us/HT201262

And once again enter every credential as described in the first article .

In Mac OS catalina if an error shows some account services will not be available until you sign in again ( update Apple ID settings ) .

Open system preferences and tap on Apple ID icon , click on iCloud in the side bar , it prompts to enter the Apple ID and password ( enter the password ) .

click on continue , the circle in front of keychain box started rotating setting up , after a while it prompted to enter the admin password and finally the box of keychain will get checked the small circle rotating in front of keychain setting up will disappear .

You have to edit each settings steps by step , enter the credentials from the beginning , click on done to save , once the first one is saved , move to next one , the last step is double click on keychain box .

Your password seems very long ( is it exceeding 32 characters ) , the space between alphabets is also counted .

What is the version of Mac used , are you using secondary authentication account ( in which three questions and answers , date of birth , rescue mail address and password is added ) , or is it two factor authentication account , post back .

Even the keychain box is semi greyed can you use 2FA , when two factor authentication is enabled the secondary authentication account is automatically cancelled , the box of keychain is semi greyed , the keychain can be reset using iPhone or another Mac .