There are two forms available in wplms one is default Buddypress One and another is wplms custom registration form. With wplms custom registration form you will get other features like google captcha option, skip email verification and other things
On your site you are also using wlms custom registration form, but you didn't followed the steps carefully:
https://wplms.io/support/knowledge-base/custom-registration-forms-in-wplms/
The page on which you pasted the shortcode was not selected here:
http://prntscr.com/t9aac0
To add terms and conditions ,Add a profile field from wp-admin -> users -> profile fields ,and then select this profile field in your custom registration form .
But on your site the checkbox remains unchecked even after saving form fields which could be possible that a third-party script is not letting the settings to be saved and show the field on register page
So you have to check this by deactivating third-party plugins or please ping me here if you want that I should check this for you