From system preferences > iCloud your 2FA is not set up properly , in your screen shot again click on Create Apple ID and a query how could you sign out from iCloud account did you quit system preferences .
See the steps .
How to create a new Apple ID with two factor authentication from system preferences > iCloud
( a ) Open system preferences > click on iCloud and click on sign out , you can see a window stating do you want to keep a copy of your iCloud data on this Mac before signing out ? The boxes iCloud Drive , contacts , calendars , reminders are checked by default - so click on keep a copy . A pop up window will appear are you sure you want to stop updating and continue with sign out ( any documents not updated to iCloud Drive , will be moved to a folder named “ iCloud Drive archive in your home folder on this Mac ) so don’t click on “ cancel “ but " click on continue with sign out .
( b ) Then check the boxes of iCloud Drive , contacts , calendars , reminders and click on continue .
a pop window will appear . Do you want to keep a copy of safari passwords on this Mac ?
( 1 ) Delete from Mac ( 2 ) cancel ( 3 ) keep on Mac .
So its optional you can select keep on Mac or click on delete from Mac ( as some user
write down the safari passwords in a safe place and they can autofill it again ) .
( c ) It will prompt enter the Apple ID password for mail address to turn off find my Mac , so enter your Apple ID password and click on continue , a small circle will rotate , be patient .
( d ) After some time a window will appear showing iCloud lets you access your music , photos , contacts , calendars and more on your devices , automatically , your Apple ID would be written in the field , click on next .
( e) It will prompt to enter your apple id password , so enter the password ( it will take some time to fill up the password in the password field ) and click on next a small circle will rotate .
( f ) Click on create Apple ID , the circle rotates , your date of birth is used to determine which services to set up on this Mac .
( 1 ) Date of birth - Day [ ] , Month [ ] , Year [ ] , click on drop down arrows of day , month , year and fill up the credentials and click on next .
( g ) A window appears get started with your name , email address and password
Name [ First ] [ Last ]
Email address - name@example.com
This will be your new Apple ID
Get a free iCloud email address
Password required …….
Verify ……..
Your password must be at least 8 characters long & include a number , an uppercase letter and a lower case letter .Fill up the credentials .
Check the box of apple news and announcements …..the terms and conditions and click on next .
Enter a phone number which can be used to verify identity via text message or phone call
Phone number …….country code will be written .
Phone number ……… enter your trusted mobile number .
Verify with - text message , phone call its optional you can check the box for text message and fill up the credentials it will show .
Did not receive code , cancel , next .So click on next .
( h ) Terms and conditions - check the box of license agreement and click on agree , a circle will rotate a prompt will appear to enter your password for admin , so enter the admin password correctly and click on ok .
( I ) A window will appear .
Use iCloud for your documents and data .
Use find my Mac
The boxes for them are checked by default , then click on next .
( j ) Again , a window will appear allow find my Mac to use the location of this Mac ?
Not now , allow , you have to click on allow .
You are signed with new apple id and password , check the box for Siri , wait for while after few minutes you will be able to move your cursor , click on iCloud Drive option button and check the box of documents and desktop .
You will notice that the box of keychain is checked but no option button is shown as this is Apple ID is created with two factor authentication .
Note : Write down the Apple ID and password in a safe place , also you can create only three Apple ID on iCloud domain using a single Mac .
