For those of you trying to set up an apple watch for a family member - I followed these instructions and it finally worked.
Needwatch’s Profile - Apple Community Ok, so we had the family member sign in on a different apple ios device, was asked to accept the icloud terms and conditions but was able to accept and login (previously we had just attempted to login on a browser and a pc). Then restarted phone and watch and tried again. Voila' worked."
I spent 3 hours on the phone with Apple support, 3 hours in the AT&T store and finally went to the Apple store. The Apple store sent the watch for repairs because they couldn't set up the watch for a family member either. I received the "repaired" watch yesterday and it was still getting stuck in the terms and conditions stage of setting up the Apple watch for a family member. The watch would set up fine if I was setting it up for myself but would not set up for a family member. I followed Needwatch's instructions and used my son's apple ID to login to an iPad. I was able to login to the iPad. Once that worked, I powered off my phone and the watch. After rebooting, I successfully set up the watch. I can't believe Apple isn't aware of this software issue, which is what it is. This has been a very frustrating experience but I'm thankful the the Community support board figuring out the answer and sharing it!