Was my Iphone Hacked or is this Apple thinking it was stolen?

Where did you originally get the iPhone 7?

It seems that device is registered to TechData under Apple's Business Manager program and was stolen or not properly removed from their Mobile Device manager prior to being retired, sold, or otherwise disposed of before you got it.

That is probably a phone that you did not buy new, and it was previously under Mobile Device Management by a business. You bought it from an employee of that business (or perhaps it was stolen from an employee). As long as you didn’t reset it you could use it (although illegally), but once you reset it the owner was notified.

Either email Tech Data and ask them why the phone you got has been flagged as stolen, or call them.

https://www.techdata.com/contact.html

Its not a scam, but it also has nothing to do with apple.

It appears that iPhone was managed by Techdata and they have not released it.

Where did you buy this iPhone from? It seems it was originally tied to them. And it was never released while you used it.

Also, did you by any chance hand the iPhone over to someone to wipe or set up? That message is just a wallpaper, so you can go into settings->wallpaper and change it.