My iPhone 7 can't make calls and msgs until it has been updated

Your phone says Searching in the upper left hand corner which means you have an issue with your SIM/carrier. You need to get this resolved first before you can update.

If you see No Service or Searching on your iPhone or iPad

https://support.apple.com/en-us/HT201415

Start here:--> If you see an Update Failed or Apple Pay Not Available alert after iOS update or restart - Apple Support

If you get no help, please contact Apple Support using this link:--> https://getsupport.apple.com/?caller=kbase&SG=SG003&category_id=SC0999&symptom_id=99976

Regards

Giulio