iphone 5s will not sync with iTunes after last update

I just updated my iPhone 5s to the latest iOS 8.4. When syncing with my desktop iTunes, here is the message I get:

The iPhone “iPhone” cannot be synced because there is not enough free space to hold all of the selected items (133.4 MB required, 2.41 GB available).

What should I do to fix this? There is plenty of room, so that's not the issue.

Thanks for looking.