Model: MD199FD/A
That is an Apple TV (3rd generation), A1427 or A1469. Identify your Apple TV model - Apple Support
- What is its version system software before trying to update?
Apple TV Software 7.9 should be available for that model, since March 14, 2020, thought to be the final version for that model. I didn’t think tvOS 8.0 would ever exist, as this model device is no longer supported for hardware or new software development.
About Apple TV (2nd and 3rd generation) software updates - Apple Support (up to 7.8)
Apple security updates - Apple Support (7.9)
The modern Apple TV app should be available on Apple TV (3rd generation) for Apple TV Software 7.3 (2019) or later, without the need for AirPlay. Watch Apple TV+ on on Apple TV (4K, HD, and 3rd generation) - Apple Support
- Verify that your Apple TV is registered to your Apple ID account (“activated”). Sign in for the iTunes Store. If activation failed, then that would be listed in Settings﹥General﹥About﹥. That screen wouldn’t mention activation if activation was successful.
Else try downloading Apple TV Software 7.9 (build 12H1006) separately, then point the Restore interface to this local file by Option-clicking the Restore button, so that it can use the local file and doesn’t download automatically what it thinks it needs.
Apple TV models have each their own software upgrade versions, which may differ from other models. Especially the 3rd generation model is compatible with Apple TV Software version 7.x as the only model for that.
As this document describes, Restore your Apple TV - Apple Support, connect without power cord initially, then connect to power as well, at the indicated moment (#4). Use a Micro-USB cable that supports generic data transfer, as not all USB cables do (notably charging cables may not be fully wired, or some bundled cables may be for proprietary use).