It will be necessary to first resolve the update issues, then reset the iPad and perform the transfer process.
If the iPad setup has stalled, perform a forced-restart:
- On an iPad with a Home button: Press and hold the top button and the Home button at the same time. When the Apple logo appears, release both buttons.
- On other iPad models: Press and quickly release the volume up button, press and quickly release the volume down button, then press and hold the top button. When the Apple logo appears, release the button.
Note: If iPad still doesn’t turn on, or if it gets stuck during start up, see the Apple Support article If your iPhone, iPad, or iPod touch won’t turn on or is frozen. Or if your iPad isn’t working correctly after you restart it, see the iPad Support website.
If the setup process being again, set-up the iPad as new, with your AppleID, but don’t yet attempt to transfer any data. Allow the initial setup to finish - and then attempt update to the most recent version.
These support pages outline both the available methods by which the update can be performed - and troubleshooting should you experience difficulties:
Update your iPhone, iPad or iPod touch – Apple Support
If you can't update or restore your iPhone, iPad or iPod touch – Apple Support
If your iPhone, iPad or iPod touch won’t update - Apple Support
iOS update and restore errors – Apple Support
If you continue to experience difficulties with direct update from iPad Settings, you may have more success if you perform the update using a PC or Mac computer. To do so you will need access to either a PC (with iTunes installed) or a Mac (with iTunes or Finder - as appropriate for the installed version of MacOS). Ensure that your installed version of iTunes has been updated to the most recent version; the essential device drivers are included.
Download and use iTunes for Windows – Apple Support
Update to the latest version of iTunes – Apple Support
Update software on iPhone, iPad or iPod touch in iTunes on PC - Apple Support
You should note that for your iPad to install an available update, its battery must be charged to at least 50% capacity - and/or be connected to its Power Adapter. Similarly, the iPad can only be updated over a standard WiFi connection - or be updated by a PC or Mac using iTunes or Finder - over a USB connection.
After the update concludes, you’ll then be in a good position to transfer data from old to new iPad. Begin with a reset of the iPad:
Settings > General > Reset > Erase All Content & Settings
These support pages should get you started with setup and transfer of your data from old to new iPad:
Set up your iPhone, iPad or iPod touch – Apple Support
Transfer data from your previous iOS device to your new iPhone, iPad, or iPod touch - Apple Support
Use Quick Start to transfer data to a new iPhone, iPad or iPod touch – Apple Support
If the donor iPad, from which you are transferring your data precedes iOS12.4, QuickStart will not be available.
“Transfer” is rather a misnomer. In reality, your data and setup is merely cloned to the new device. Nothing is moved or removed from the original device.
An alternative is to restore either an iCloud or iTunes backup to the new device:
How to back up your iPhone, iPad and iPod touch – Apple Support
Restore your iPhone, iPad, or iPod touch from a backup - Apple Support