Hi, lyonsbrew,
I understand from your post that you've got a disabled iPod touch (6th generation) and are having trouble resetting it in iTunes. I'm happy to help!
It sounds like iTunes might need a newer version to work with the iPod, and that in order to update to the required iTunes version your macOS software also needs to be updated. To update iTunes, update your macOS software using the steps in How to update the software on your Mac - Apple Support.
If you continue to receive an error that there are no available updates, please respond back with the Mac model and currently installed macOS version. You can get this information from the Apple menu > About this Mac. We're looking for the macOS version (example: macOS Mojave version 10.14.4) and the Mac model (example: MacBook Pro (15-inch, 2019)).
Have a wonderful weekend.