Press home to upgrade iPhone 7

Hi,

I have tried to set up my iPhone 7 for my child and did a factory reset. The home button does not work but had a work around when you put another home button on the screen and it worked fine. After the factory reset my child has logged into his Apple ID but just keeps saying press home to upgrade storage… I have tried resetting by pressing volume down and sleep button but I do not think it is doing a restore … help !!