iOS update not downloading

I'm trying to update to iOS 14.0.1 via download to my Mac. I am following these steps:

1. Connect iPhone SE to Mac Mini late 2018
2. Go to Finder on Mac Mini
3. Under Locations, click the entry for iPhone
4. Click Back Up Now
5. Once the backup completes, click Update

Actual and expected results: Get notice that 14.0.1 is available.

6. Click Update

Actual and expected results: Get dialog that there are purchased items on the iPhone that have not been transferred to my Mac. This is expected because the phone has one app that was installed by our IT department and is not associated with my Apple ID.

7. Click Continue

Expected result: Update downloads and installs

Actual result: Nothing happens

I can confirm that nothing is happening because if I go to Terminal and enter the following command:

ls -lhrt ~/Library/iTunes/iPhone\ Software\ Updates

I only see the previous .ipsw files (last one in July 2020) and no .ipsw.download files.

How do I get the update to download and install?