iCloud mail verification fail - new iphone 16 plus set up

Setting up iphone 16 plus. I have a very old apple ID with an old email I only keep for the apple ID (it's a hotmail.com email acc) this is the one I use for back ups etc. I also have an @icloud.com. I use the @icloud.com email for day to day emails and it is account that is on the "mail" app on my old phone. I am trying to set this up on the new phone and when asking for the password for the @icloud ID I am entering the correct password (I've even changed it so I know it is correct) and get the error message "verification failed. Unknown error occurred" I have no idea how to fix this - any suggestions?

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iCloud mail verification fail - new iphone 16 plus set up
 
 
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