End-to-end encryption error during Apple Watch setup on iPhone 14

I am trying to pair my Apple Watch to my new to me iPhone 14, and whether I try to restore the settings or set up as a new watch, I get repeated message “This Feature Uses End-to-End Encryption

Your Apple Account settings need to be updated so this iPhone can use end-to-end encryption”

i’ve googled it with no luck. Honestly, I’m so fed up that I regret getting this phone. Any help?

[Edited by Moderator]