iPad managed apple ID users get error when setting accounts

[robertojok]

We have new users (as of 29 of May 2018) with appleid accounts set in Apple School Manager. When the users login to an iPad with their apple institutional ID and temporary password all seems well and the iPads restart after the "Getting ready" stage. The users select English as their language, then select United Kingdom and after that the error "Error setting up account try logging in again" appears.
However users set up sometime back, about 3 months ago do not have this issue.
The new accounts are the same as the older working accounts.
The iPads are running iOS 11.4
Anyone come across this error?

[thejenbot]

I remember something similar to that during a large deployment last August; we had to cancel it in the setup assistant and then complete the login to iCloud in the Settings app. Sometimes it required having the password reset in ASM again; I remember a couple of occasions in which we couldn't get the account set up on the device and had to complete it on a Mac by going to appleid.apple.com - and since it is a MAID you would need to get the six digit verification code from ASM for that as well. That extreme was only on 2 iPads; the issue you're experiencing (which signing in via the Settings app and changing the password there) worked to fix probably around 20, and our deployment was for a total of ~900 devices - so not very many in the grand scheme of things...