DVMagic
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I just went through this today 7/17/2020 to setup an AppleID for ApplePay testing. Not only did I need an available (never used email address), but also and never used AppleID. Created a new one, used the new test email address, went through the 2-step verification when I signed in. The key here is that you THEN have to from a browser sign into iCloud.com with the new test user account AppleID and password and ACCEPT the terms. Once that's setup, then go back to sim and it should work. To me it was signing into iCloud.com that was the magic here. -Kevin