Per apple, once you select "agree" on the popup, this will clear the App Store connect status for the sandbox account as well

The transaction will be call the observer? specifically, does step #10 gets called or will the app needs to be "recycled" via user touching the home button and then relaunching the app? https://developer.apple.com/documentation/storekit/original_api_for_in-app_purchase/testing_in-app_purchases_with_sandbox/testing_an_interrupted_purchase (Step #10)

can you verify is this is still the case for IOS14.5? I am still seeing issues with step 10 in this documentation (https://developer.apple.com/documentation/storekit/original_api_for_in-app_purchase/testing_in-app_purchases_with_sandbox/testing_an_interrupted_purchase)