Unexpected error when trying to connect Airport Time Capsule base station to network
I have been given an Airport Time Capsule (2TB Modle: A1409) the has never been used. My laptop is a 2012 model MacBook Pro (Quad-Core Intel Core i7, 2.3 GHz Quad-Core Intel Core i7, 16 GB 1600 MHz DDR3) running Catalina 10.15.7. It came with an installation CD but when I try to use that it says the software is not supported by the operating system. This I assume is because the current OS has surpassed the software on the disk. In any case, the current OS comes with Airport Utility so this shouldn't be an issue.
On my computer, I have tried to connect the base station to the network by selecting Networks > 'Airport Time Capsule' from under "New AirPort Base Stations". The AirPort Utility opens up and under Options, I select 'Add to an existing network'. Here my Wifi network is listed and I enter my network password and click Next. It appears like it is connecting to the network but then I get the message "An unexpected error occurred. Try again." And on the Time Capsule the light is blinking Amber.
I have tried multiple times but this does not seem to be rectifying. Can anyone help me with connecting this Airport Time Capsule to my computer? Does the base station need to be updated? How would I do that? Or is there a different set of instructions I should follow to connect the base station to the network?