Accessing device with broken touch sensor and LCD using adb
You are being prompted to accept the dialog on screen,   

You obviously have no option to actually accept the dialog, so your chances of getting around this are low.  

You may be able to swap between USB OTG mouse and USB cord to accept the dialog and then swap back to continue in ADB... 

If you are serious about repairing the device or at least recovering the data, a last resort would be to just replace the digitizer and LCD ... 
Cheap Digitizer &amp; LCD on EBay