Is the problem that our FIOS router is not a "simple router" and we therefore need to get Frontier Communications to provide one for us.....
The Guest Network feature on the Time Capsule and other AirPort routers requires that you have a simple "modem", not a modem/router or gateway device like you have currently.
do I need to change the router mode from Bridge Mode to DHCP and NAT
DHCP and NAT is the correct setting when the Time Capsule is set up to be a router......but that would require that it is connected to a simple modem.......not a modem/router or gateway device like you have now.
It is easy to know if you have simple modem.......since it will have only one Ethernet port.......like the example that you see below:

Unfortunately, Verizon FIOS does not offer this type of modem unless things have changed very recently......so you are locked into a modem/router or gateway device.......which is actually two products in one.......a modem and a router in the same physical package. To operate correctly with a modem/router, the Time Capsule needs to be set up in Off (Bridge Mode), as it is now on your network.
If you attempt to change the Time Capsule from it current "Off (Bridge Mode) setting to DHCP and NAT, the Time Capsule will start blinking amber and display a Double NAT error message.......something that you would want to avoid since that can create any number of issues including slow browsing (or no browsing to some sites), communication problems between devices on the network, and other unforeseen problems.
That being said, sometimes you can get away with a Double NAT error on a simple home network, but I'm not recommending that you try it.
A better plan might be to use the WiFi created by the FIOS router for your "Guest Network" and use the WiFi network created by the Time Capsule as your "Private" network.