I had the same problem with a brandnew nano gen 7 on Catalina.After the "Get Started" in finder it was always "loading..." and after some time saying "The selected device could not be found".These steps helped me to finish setup and being able to sync:/1/ eject in finder/2/ disconnect iPod/3/ reconnect iPod/4/ open DiskUtil/5/ select the iPod/6/ Erase: Mac OS Extended (Journaled)After this procedure I am happy again.
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Try this:
Use the iPhone SE simulator and make a screenshot.
Then use the ImageMagic convert in a Terminal window:
convert Simulator\ Screenshot\ -\ iPhone\ SE\ \(3rd\ generation\)\ -\ 2024-01-06\ at\ 10.24.40.png -resize 1242x2209 -crop 1242x2208+0+0 01-5.5.png
See https://imagemagick.org/script/convert.php