I am unable to setup my ipad transferring data from old phone to a new phone error after selecting how I want to backup.

Hi mofaladi,

Regarding restoring the backup, the screenshot provides information that no iCloud backups listed are compatible with the iOS 12.5.5 version installed on your iPad. It also mentions the backup requires iOS 15.6.1 to restore data.

You can also find helpful information here: Restore an iPhone, iPad, or iPod touch that needs a newer version of iOS or iPadOS

Additionally, you can continue with the setup of your iPad and sign into your Apple ID and iCloud account to sync content over. Sign in with your Apple ID - and Sign in to iCloud on all your devices can further assist.

Cheers.