Can't get past the setup on a iphone?

My dad got me an iphone. Its an old model but not sure which one… Maybe an iphone 5.
anyway when i turn it on the set up screen comes up… I have to put in english and my region etc. I have managed to connect my Wi-Fi but then the activation lock screen appears. I put in my apple id and password and press next but then it just goes back to the beginning of the set up screen. What id wrong and how do i fix this?

Is there a way to recover my lost contacts on my iPhone?

Today I moved my phone over from one iPhone 5 to another iPhone 5. The rep at the Apple Store said I should be fine leaving and that all of my remaining info that hadn't downloaded would eventually update. However, most of my contacts never downloaded. I wanted to reset my phone, but when I logged into iCloud it now says I have never backed my phone up. I know I backed my old phone up multiple times. Why is my previous backup not showing up anymore?

Why can't I download photos onto my computer?

My phone is plugged into my computer and when i go into file explorer, go under apple iphone, internal storage, there's nothing there. Normally there would be some folders that say 'DMC009' or something like that which contain all of my pictures that are on my phone but there's nothing there. When I try to download them straight through the photos app on my computer (the one that automatically launches when i plug my phone into my computer), it's saying that there's no device detected. What should I do? (No i will not email all my photos to myself. I've done that once in the past but then i have to unzip and extract every single file and my email tends to get deactivated for a day because sending and downloading so many pictures is suspicious)

Added (1). My computer is a PC laptop, my phone is an iPhone 7 and when I plug my phone into my computer, I have already hit the 'trust computer' notification that comes up on my phone.