What is a restriction passcode?
I was resetting my iPhone. After backup, tapped Erase All content and Settings. It read enter four-digit restrictions passcode. I don't remember setting one. What is the next step?
iPhone 7 Plus, 12
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That passcode was set up (by you or someone else) to manage Restrictions (now Restrictions setting have been moved under Setting>ScreenTime).
If you don't remember that passcode, you need restore your device to factory settings (without restoring data from backup) and, in the end, set that device up as new. Follow these steps:
Restore your iPhone, iPad, or iPod to factory settings - Apple Support
Regards
Giulio