OK, so far it's not clear what the solution is, only that (cancel) leads to the popup reoccurring, and that ((transfer) stops it from popping up. That indicates nothing about what is logged as data and what access is limited as a result. The issue would be multi fold:
A) trying to restore your phone again only to find out you are now locked out of downloading any previously purchased app for ~90 days
B) You have multiple apple ID's / accounts because you have had to do this to get around traveling/living in different countries, so how are these affected in the onboarding process or later trying to restore those apps through the restore option later offered by apple in the restoration user path.
C) it affects nothing at all, though that seems unlikely as the terms are clear, though the actionable buttons provide no insight as to what will happen as a result.
I imagine this is more than a bug, it's likely a safe-guard to theft in general, where just wiping a phone and another bug allowed individual phones to be resold after stolen, but now having to erase the phone from an Apple ID account which it was tied to marked as lost stolen etc would brick it, potentially. You get what I'm saying and it seems obvious, but this is why you are meant to check serial numbers because Apple didn't want to automate this. I imagine this is their fab solve.
Additional issue I encountered having two accounts: I was asked to sign into my other Apple ID in order to download the apps purchased under that ID, after doing so I had to provide a verification number sent to the numbers associated with the account. Well, I lost my phone down a manhole and can only receive texts and FaceTime calls on one of those numbers. Apple never made it clear who was sending the verification code, which country, and they never came through. So I will continue to monitor this and report my findings as they are unique.
I would call Apple, but, lol, no way if I can find the answer by googling it, stupid suggestion by whoever thinks all your time is best spent on hold then battling tech experts, why do you think these forums exist. I've called 911 countless times and they have not once come to my rescue. I hope for hope.