Setting up new iPhone using Finder failed

Hey Room101A,

That's a great question. When you restore an iPhone from a backup, downloaded and purchased apps are not included in the backup as they are associated with the Apple ID used to initially download them, so in that case, apps would need to be redownloaded from the App Store using the Apple ID that originally purchased them.

This article explains further what each backup option includes: Backup methods for iPhone, iPad, and iPod touch

"Backups from your computer

A computer backup of your device, which is not the same as a sync, includes almost all of your device's data and settings. A backup from a computer doesn't include:

• Content from the iTunes and App Stores, or PDFs downloaded directly to Apple Books
• Content synced from Finder or iTunes, like imported MP3s or CDs, videos, books, and photos
• Data already stored in iCloud, like iCloud Photos, iMessages, and text (SMS) and multimedia (MMS) messages
• Face ID or Touch ID settings
• Apple Pay information and settings
• Apple Mail data
• Activity, Health, and Keychain data (to back up this content, you'll need to use Encrypted Backup in iTunes.)

Learn how to back up your device using your computer, how to find backups on your Mac or PC, and how to delete backups that you no longer need."

Thanks!