Unable to Activate Iphone

Hello

I wonder if anyone can help. I just upgraded my Daughters Iphone 7 to an Iphone 11. The plan is to recycle the old Iphone 7 to my younger daughter. However my older daughter did a full reset of the phone before giving it to me to wipe all of her data. Now when I add a new SIM to the Iphone I get the message "Iphone unable to activate, an update is required to activate your Iphone". I have tried switching the phone on and off, also connecting to Itunes on my PC (I updated Itune to the latest version) but I cannot continue with the set up on the Iphone 7. I even tried the SIM from my Iphone 7 but the error message remains. The new SIM is EE and the original SIM we BT so on the same network.

Can anyone help? I was not planning on scrapping the phone yet as it is only 3 years old.

Many thanks

Paul