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

Same issue here. also on PC where I had my son previously set up on and have deleted the access on the PC in order to make some space on the SSD....also on the new Gaming Laptop not working.... come on microsoft! whats going on?

Same here, and I found that this problem is around since 2016, it's insane!

Same issue here. The most infuriating thing is that this Microsoft issue is causing all parental blocks for my children to just vanish. No idea how long it's been down now with my kids able to click on any garbage online they happen to find. And Microsoft is apparently silent on all this? Give us some feedback on the issue that is obviously on your end and not the consumer. How do we get this resolved already!?

Same here. fresh new install with windows 11. Impossible to set parameters from the local pc...

I called Microsoft and had one of their engineers connected to my laptop. The issue was resolved. My issue was only for the new laptop, the old laptop worked fine and I had Family Safety up and running for a while > 1.5 years. He removed old laptop under devices, tried something (not very clear) to add my new laptop, added my old laptop back to Family Safety. Then asked me to wait for 24 hours and assured me the problem will be solved.

I waited for about 1~2 hours and found out the new laptop was added as a second device.

Not sure this can help anyone but you could try to call MS to ask for help.

I am having this issue after doing a clean installation of Windows 10. I tried removing my computer from devices. The way I was able to re-add it was to switch to a local account then convert it back to a Microsoft account. But this did not solve the issue for me. Do you remember how your new laptop was added?
I contacted MS via chat, but they were not able to solve the issue and said that this was likely an emerging issue.