Correct and I have a new update Will. A senior advisor called me and connected me to engineering. They said somehow the phone was locked to AT&T. They did something on the servers and now a regular restore will fix it.The seller does or VZW/Apple do? (Sounds like their fault, not the seller's.)
This seems like its correct bc when I got my sim free replaced at an Apple store, it showed a weird carrier in the settings called TFW. Engineering fixed it, I restored it and the TFW went away.
Told the buyer, lets hope it works after a restore.