What is the ruling on eating sweets distributed in celebration of the Prophet's birthday, is it permissible to accept them, and what should one do if they accepted them out of shyness?

We have previously discussed the topic of Mawlid and its practices in Fatwa no. 39078. As for anyone who is given some of that food, there is no harm in accepting and consuming it, because the prohibition was not directed at the food itself.