iPhone 7 error 'Data recovery cannot be completed. Please restore your iPhone from backup.'

My daughters phone came up with error 'Data recovery cannot be completed. Please restore your iPhone from backup'. I've tried resetting the phone and have plugged it into computer to hook up with iTunes but the computer will not register that I've plugged the phone in. I have tried another phone on the computer and it worked ok.

When I reset the phone, I enter the password twice and then it comes straight up with the above error. Any ideas?