The new iPhone should already have iOS 16 from factory. You just need to backup your current device to iCloud. During the transfer, it will ask you if you want to convert or transfer eSIM. If not, go to your carrier website and do a change/update sim where it should give you an option to enter physical SIM card number or eSIM. If you selected the option to connect your carrier for the preorder, there should also be an eSIM on the new device. There are these options restore your data to new device.
1. Restore from iCloud on new device (data and redownload all apps automatically)
2. Device transfer using the camera dongle cable
3. Start as new, sign into iCloud to resync all your data, redownload apps manually as needed
I go with option 3 since I wouldn’t want all 300+ apps to be redownload automatically so I’ll just download as needed. After set up and cellular is working as it should, make sure to migrate Authenticator apps to new device since it won’t automatically when you sign into those apps.