Near the end of a sprint, the product owner reports that a local regulator has banned part of the deliverable. What should the project manager do?

The correct action is to conduct a sprint risk assessment and analyze the impacts. This is a critical change that directly affects the deliverable's viability and legality. The project manager, in collaboration with the team and product owner, must immediately assess the regulatory ban's scope, its impact on the current sprint's work, future sprints, and the overall product roadmap. This assessment will inform subsequent decisions, such as whether to stop work, pivot, or seek clarification. Finishing the sprint and requesting a waiver is premature and may lead to wasted effort if the waiver is denied or if the deliverable is fundamentally non-compliant. Adding additional value-adding items to the sprint backlog is inappropriate; the immediate focus must be on addressing the regulatory issue, not adding new work. Finishing the sprint but withholding release of the deliverable is also premature; a thorough assessment is needed to determine the best course of action, which might involve rework or even cancellation of certain features, not just a delayed release.