Apple Wallet error prevents adding digital drivers license

Hi - I'm having problems adding my drivers license (MD) to apple wallet. There is a red dot with a number '1' in it on right hand side of the the selection button and the message 'Unable to add ID'; when I tap the button, I get an error saying 'Cannot connect to Apple Pay, Make sure you are connected to the internet'. (See image).

I am connected to the internet and all other features of Apple Wallet work - Apple Pay, boarding passes, transit cards, etc. Rebooting the phone did not solve the problem, nor did swiping up to close the app and then reopening it.

I'm running an iPhone 11 Pro with iOS 17.6.

Thank you,

James