Just worked through this issue with Apple support and in my case it turned out to be an AppleTV unit that was linked to my iCloud account. If you're still experiencing this issue, go to iCloud in your device settings to see if any of the devices linked to your account are older or if there is an AppleTV linked to your account. Remove any old/unused/unnecessary devices from your iCloud account, restart your device, and try to activate two-factor authentication again. This solved the issue for me, hope it helps others.