There is a button on that screen to ignore the airtag and it will never alert you again for that particular tag. Apple cant solve the fact you didn't read the small amount of text on the page.
It's been reported that this option is not presented to everyone. (I do however get the option to disable Safety Alerts for all AirTags though, which isn't really what I want). Next time I get it I'll try tapping again to see if anything got kicked into place with 14.7.1.
If the other user is in your Apple Family you will be presented the "ignore forever" option. Otherwise you can only ignore the AirTag for 24 hours.