Transferring from iPhone 7 to 13 mini

I just received my iPhone 13 mini today and I was exchanging data from old iPhone to new one. Everything went well but when i open the settings, it was showing “Update Apple ID Settings “ for some services to be available so I click and it asked me Apple ID password, i filled and it asked me phone passcode, I filled and it asked me to enter the passcode for old iPhone as per image. I have only one passcode to unlock my phone since my data has been transferred from old to new. What does it mean by enter the old iPhone passcode?

And when I scrolled down in the settings, I am seeing the 2 devices which are 13 mini and iPhone 7. Shouldn’t iPhone 7 disappear by now ? My old iPhone has been cleared after transfer completed. Please help me solve this.