"We couldn't connect to Microsoft family right now, so your family on this device might not be up to date. "

Hello, I had the same issue.

This is how I solved it ( I have italian version, so the name of the settings may be different in english):

in account-your info (the account of the family admin), below "manage my Microsoft account", I found something like "you have to update this info.." or something like that

by clicking on it and logging in, the problem instantaneously disappeared!

Thanks
Massimo

I also had this problem on several computers and managed to solve it. On Windows 11 under Settings->Accounts->Your Info, there was a message that read something like "You need to update some info for your Microsoft account". I pressed "Continue" and I guess the information was updated, because this resolved the issue on all computers. This maybe works also for Windows 10.

Sir, you are awesome! Windows 11 user here that needed to setup a new laptop with a child account. This was the solution! Would have never found it otherwise. Thank you :)

I solved it by changing the local account to a microsoft account. This error appeared on a laptop (not the original family device) so I forgot it was not logged in as a microsoft account.

Solution steps:

1. On admin/organizer account: add child accounts, and make sure to log in to them the first time so they are fully set up. (If you go to the "Family & other users" tab now it will still show the error)
2. Then on the admin/organizer account go to Your Info. (If you're having the same issue as me, under your name here it says "Local Account") Hit "Sign in with a Microsoft Account instead."
3. Once that's complete, come back to the "Family & other users" tab, you should see that your child "Can Sign In". If you don't see that hit "Allow".
4. Now log in to the child account and open Microsoft family safety on a browser: account.microsoft.com/family/home, and on the child's page there should show another connected device!

I've got the same issue - I am logged in with a local account and my kids do too, but I wanted to add my kids family accounts so I can manage their screen time and access - but getting the same error that everyone else on this thread seems to be having.

Unclear what steps to take to fix it - no proxy or vpn, internet clearly working fine and the services from the link look good.

looks like they fixed it, at least for me the list of family members showed up correctly today