Mine failed the first time, also. I skipped past that and the phone asked to update. After the update to 7.0.2, the transfer asked for my phone number and zip code, and the transfer completed first time with no problem.
Agreed it was not as easy as last year.
At least you guys have your phones! 😭😭😭Exactly. Same experience with mine. I guess it must have been the update that added the correct screen in setup.