You changed the acceptance checkbox label at checkout to mention only House Rules, but the validation error still says "Please read and accept Privacy Policy and Terms."
Why this happens. The validation error is written for the default checkbox label, which covers the Privacy Policy and Terms. When you shorten the label to mention only House Rules, the error text does not update automatically.
What you can do. Contact support to have the error text on your site adjusted to match your checkbox label, for example "Please read and accept the House Rules." No changes are needed in your PMS.