Some iCloud Data Isn't Syncing

[lsquare]

I just bought the iPhone 17 Pro Max and I want to do a "clean install." I used my Apple ID and set up the iPhone as new. Everything goes through smoothly until I get to the home screen. Soon, I'll get a notification telling me the following:

Your end to end encrypted data stored in iCloud can't be accessed on this device. It includes saved passwords and data from Health and Maps. Verify your account information to resume syncing.

I tap "OK," enter my PIN, and then get the following prompt:

Couldn't Sync iCloud Data

To continue using iCloud to sync your end to end encrypted data, you'll need to delete current data stored in iCloud.

What's going on?