You don’t have a 7th gen touch because they don’t exist. The latest model is a 6tth gen.
But even beyond that, you cna’t remove that lock. It’s meant to be a theft deterrent system so there’s no user work around. Take it back and get your money back. At best they bought something without checking that it had been properly wiped, at worst you bought a stolen device.
In any case it cannot be used and is worthless.
The link below has info about the activation lock