I found a workaround, I logged in to the XBL website using my daughters credentials. It asks to accept the new terms, it then sends me back to the login to put in the parental account (ME), I do that then it allows me to accept the agreement and sends me to her XBL page.

I'm not sure why this isn't working on the console side but at least this is a workaround till it gets fixed. So just FYI to anybody else having the same issue.