AirTags Stuck in Lost Mode - No Option to Disable - iPhone 13 mini on iOS 18.7.1

Hi,

I recently bought four AirTags and noticed something very strange:

• I enabled Lost Mode on my first AirTag (in error), but I cannot disable it — the “Disable Lost Mode” option is completely missing in Find My. Not greyed out - it simply isn’t there.
• Every new AirTag I add since then also shows as Lost by default, with no way to turn Lost Mode off.

What I’ve tried so far:

• Removing and re-pairing AirTags (including full factory resets with the battery reset method)
• Signing out and back into iCloud
• Resetting network/location settings
• Testing multiple different AirTags
• Checking Screen Time restrictions
• Checking Region Settings
• Resetting my iPhone entirely

None of these made any difference.

To make things more confusing, when I called Apple Support, two different agents told me that you can’t enable or disable Lost Mode on AirTags at all. But that doesn’t line up with what other users say - there should be an option to turn Lost Mode on or off. There's even a video on YouTube on the official Apple Support channel showing how to enable Lost Mode with Airtags! AirTags - Setting Lost Mode

This makes me think the issue is not with the AirTags themselves, but with my Apple ID / iCloud account - possibly a server-side flag marking all my AirTags as lost by default.

Has anyone else seen this? And if so, how did you get it resolved?

Should I be able to enable and disable Lost Mode with AirTags, or is the missing option perfectly normal?

Thanks!