I had the same problem, called both Verizon and Apple. No one has a solution or understands what the problem is. They all said try it again tomorrow.
FWIW, a few years ago I had a problem where it did not recognize my serial number. What had happened was that orginally when I received the phone I had an issue. Apple replaced the phone. But when they replaced it, they did not update serial numbers etc. So a year later when we rolled around to the new upgrade it appeared I didn't qualify. No one knew what the problem was, or how to solve it.
What I did at the time was buy a phone for cash. Then within the 14 days I took my old phone into the Apple store and told them I wanted to be on the upgrade program. It took them a couple of hours, but they finally figured out what the problem was and straightened everything out.
I think that's what the problem is here. It's a glitch. They may well not understand there is a problem, and therefore what to do about it.