Disney+ Confusion

Hi, a few things are confusing me about Disney+

I have an account which my child also has logged in on their device which they use at school sometimes.

We share the same user account, so is this ok? I know there was new rulings on sharing so I didn't know how it worked? Is it best to set each person in the household a user account on my main?

I have tried this but it's insisting I have a passcode on the second user account that I can't remove.

Thanks