There are 3 possible issues that can cause this issue
The device is iCloud Locked and can't be activated
The Auto PEO toggle is turned off on desktop
The computer isn't connected to the internet
The device requires a manual activation
Apple server in your region may be experiencing intermittent issues
Follow each step in the section below in order to find the root of the issue and resolve it.
Check Auto PEO toggle if it is turned off
Navigate to the top of Phonecheck desktop
Enable the toggle for Auto PEO
Reconnect the device and try again
The devices require manual activation
Note: Apple Care Replacement devices have a screen on Activation that requires the user to select a carrier to activate the device.
This screen can not be automatically skipped by any software.
On the device select language, connect to wifi and proceed to the activation screen
After the activation screen, select a carrier from the carrier list.
Once the device is activated you can reconnect the device to skip the remaining setup screens and install App for diagnostic testing.
If you receive the message below from iTunes you will need to select a carrier from the device.