I opened up a new case with Apple, as as soon as we told the students to upgrade to iPadOS, I had two students come to me with this issue. Since then, I've had the same exact issue, whenever I set up a new iPad via AC2. The issue can be seen on the video below, basically unable to get out of the Setup Assistant on a specific step. If I prepare an iPad directly, without AC2, it works fine. So far no feedback from Apple, so was wondering if anyone else has seen the issue as well.
I saw similar behavior on an iPad that was set up with AC2. What finally worked was to completely reset it and run it thru the AC2 enrollment again. However, I did also rebuild my AC2 enrollment blueprint that I’d built in August. So the problem may have been related to some stale info or cert or communication with DEP or the JSS.