Peloton support solved this for me - a factory reset was required. I have posted their instructions below
Please follow the steps below to perform a FACTORY RESET:
1. Turn the touchscreen off by holding down the power button and selecting “Shut Down”.
2. Hold down the volume up button on the touchscreen and the power button at the same time.
3. The touchscreen will power on and the Peloton logo will appear after a couple of seconds.
4. A menu will appear to the left of the Peloton logo, with “Select Boot Mode” and the options “Recovery Mode” “Fastboot Mode” and “Normal Boot”.
5. Use the volume up to navigate and the volume down to select. Navigate using the up volume key to “Recovery” and use the down button to select it.
6. You will see a screen with text that says "No command." From this screen, hold the power button, tap the volume up button, then release the power button. This will allow access to the advanced system recovery menu.
7. Use the volume buttons to navigate to “Wipe All User Data / Factory Reset” and use the power button to select it.
8. Confirm by selecting “Yes --Delete All User Data. Once the data has been wiped, select “Reboot System Now.”
The screen will reboot to the Peloton logo followed by the normal activation sequence.
These are all the steps that you need to fix this software issue. If the issue persists, please contact Apple support as the problem could be coming from Apple.