I had same problem to connect to sandbox apple ID account on iOS simulator, fixed by accepting terms and conditions on icloud.com ... Thank you Apple, your dev UX is so bad ...

I had the exact same issue, and this is how I fixed it: I needed to use app build signed by Apple, install from testFligth. Tests build, even in prod flavor, throw this issue (Proceeding with provisioning without fairplay data: -42187, and status 500 at the end).

I also confirm, this is fix in iOS 18.2 beta 4