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Try opening Photos app first, then close it and then uncheck the button. It'll take a while until the UI updates.
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Simpler solution: Settings -> iCloud -> uncheck iCloud Photos.
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What helped me (MacBook Early 2015):- Launch in recovery mode- Choose Restore- Restored Catalina. Took about 3-4 hoursBefore that I've also made sure to delete all Time Machine snapshots, as I suspected that verifying them could stall installation.