Reset End-to-End Encrypted Data to sign in to iCloud

My husband and I were sharing the same appleid and I just created my own. Everything seems to have gone well, but my "settings" icon has a red circle with a "1" in it. After opening the settings, I see the message:

"Update Apple ID Settings

some account services will not be available until you sign in again."

When I click on the continue button, I am asked to enter my password my Apple ID and then for the iMac. Here is the problem:

I get the popup error message about reseting the End-to-End Encrypted Data (I attached the popup to this question). After clicking "Continue", nothing happens. The problem persists. I still have the red circle with a "1" in it indicating I need to "Update Apple ID Settings".

The error message is not very specific, and the Continue button does nothing. Any Ideas?