How to cancel AppleCare+ subscription that hasn't been set-up correctly

I purschased an iPhone 13 Pro in New York and I got AppleCare+ as well. Problem is that I live in Iceland and Apple doesn't allow me to complete the setup because the AppleCare and AppleID have different regions/countries. To cancel my subscription it seems that I need to complete the setup first. How do I do that?

Also, seems like they shouldn't have sold me AppleCare+ in the first place because my region is in Iceland? Should I get a refund?

-Heiðar