iTunes can't recognise my iPod 5G as being set up.

I bought an iPod Touch 5G and set it up using the set up software on the iPod however, when I went to plug it into my laptop ready to sync all my songs, the screen you get when you plug a non-set up iPod showed up. I have been trying to fix this for ages but I can't find a way around it. I don't want to use iCloud Backup as I am using the free plan and do not want to upgrade. I cannot back it up and restore to that backup and I can only restore all of it and start over again and I do not want to do this because as many users might know, it is very annoying trying to get everything back the way it was. Can anyone help me with this as iCloud upgrading as a second-to-last resort and restoring being a last resort. Many Thanks, MrDuckbuild 😕