I now have bought a second oculus 2 and it is doing the same thing. Ive tried it on 3 different phones too. Let me explain again what they are doing.
After a factory reset I turn on the headset it's boots up just fine.
The headset displays the pair your headset with the app window is the only thing available on the headset.
I use my app to try and pair either headset.
I choose oculus 2 device and the app asks for the devices 5 digit code.
After that it loads and then says no device found and asks if I want to try again or exit paring.
Important mentions the phone is connected to the wifi and Bluetooth is turned on.