I confirmed with Google LSA support in 2025 this message is an error. As of May 2026 the message still displays.
The issue:
LSA displays a yellow bar which says "Ad is paused - Your ad will not run until you turn it on. This message can display even if the ad is ON, as seen in this screenshot below:

There is no solution. This error message displays in the LSA dashboard because the system has lots of problems - this is one of them. For some reason this seems to affect law firms more than other industries.
The issue:
LSA displays a yellow bar which says "Ad is paused - Your ad will not run until you turn it on. This message can display even if the ad is ON, as seen in this screenshot below:

There is no solution. This error message displays in the LSA dashboard because the system has lots of problems - this is one of them. For some reason this seems to affect law firms more than other industries.