Do not identify yourself with race or stage of life; those belong to the body, not to you
The verse targets the two most socially defining categories in traditional Indian life, caste and stage of life, as properties of the body rather than of the self observing them.
The terms behind "race" and "stage of life" are varna, one's caste or social class, and ashrama, one's position in the traditional four-stage life scheme of student, householder, forest-dweller, and renunciate — two of the most socially load-bearing categories in classical Hindu society. Ashtavakra's point is blunt: both are properties of the body and its social situation, inherited or assigned, and neither can describe the witness-consciousness doing the identifying in the first place. It is striking to find this claim addressed to a reigning king by a sage tradition remembers as physically deformed, since the teaching cuts beneath both figures' visible identities to something neither royal status nor bodily disability can touch. Nothing in the verse asks Janaka to abandon his throne; its target is misidentification, not social role as such.
Ashtavakra Gita
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The two categories stripped away are varna and ashrama, caste and life-stage: the most socially load-bearing facts about a person in that world. The same move makes a diagnosis a fact about your circumstances rather than a fact about you.