iPhone X to iPhone 12 Pro Bluetooth Transfer Put Photos Directly on Phone not iCloud

I just received my new iPhone 12 Pro (256gb) and I did the new bluetooth data transfer by placing my old phone (iPhone X) next to my new phone. My old iPhone X has 256gb storage and I sync my photos to my iCloud which has 2T of storage and I was using less than half of the iPhone X storage capacity. After the painful 3 hour transfer to my new phone, it appears all of the photos transferred directly to the phone and now it is indicating that my phone storage is full (almost entirely photos) and none of my apps are downloading or usable, I'm not receiving text messages and my email isn't populating. The phone is giving me suggestions for freeing up space and it is saying that only 1% of my iCloud photos are synced. Will this process just take forever until my phone is usable and all my photos sync to the cloud? Can I do an iCloud backup from my old phone and then reset the new phone and start over and not do the side by side sync but an iCloud backup?