Hi, I’m running into the same problem and wanted to share our experience.
Our app was initially submitted with the Kids Category selected by mistake. We later removed the Kids Category and set “Age Categories and Override” to “Not Applicable,” but App Review continued to reject the app under Guideline 1.3. To remove any ambiguity about the intended audience, we then updated the age rating to 9+, but the rejection still came back with the same Kids Category reason.
When we tried to further increase the age rating to 13+ to clearly indicate that the app is not for children, App Store Connect did not allow the change and showed a generic error in the UI (“An error has occurred. Try again later.”). Inspecting the browser console showed that App Store Connect considers the app restricted to 4+ or 9+ age ratings (ENTITY_ERROR.ATTRIBUTE.INVALID.NEW_AGE_RATING_TOO_HIGH_FOR_KIDS_APP), which seems to imply the system still treats the app as if it were configured under the Kids category, even though “Made for Kids” is not selected in the UI.
We’ve double-checked all visible settings (categories, age rating, locales) and raised this with App Review/support to ask for guidance on what specific configuration needs to be changed to resolve the loop. If anyone here has already managed to resolve this and get unstuck from the Kids Category, I’d really appreciate it if you could share what worked for you.