How to set up end-to-end encryption for AirTag?

I recently got an air tag for my wallet. The latest update is installed. I get a message that says I need to have end to end encryption set up. I hit continue, a white screen appears, with a little spinning circle for a few seconds and then it drops down. But I’m right where I started nothing happens and I get the same message. The same message occurs when I try to set up a legacy contact.

[Re-Titled by Moderator]