having exact same issue. bought a cheap quest 2 but ive torn the controllers and headset apart to no avail. stuck in this screen as well and both controllers rumble and blink like they arent paired. but they show they are on the horizon app. so now be both wait for someone with insight. im going to attemp known working controllers from my brother
actually ive gotten a bit past this. to where it instructs you to point the right controller to the continue button. but i cant do anything past that. my guess is that we need 2 good working controllers to get past this. but again i hope someone has insight
After factory resetting your device, please try the following steps:
Power on and put on your headset.
In the headset, either an animation will ask you to remove the pull tabs from your controllers or a message will tell you that the headset can't locate your controllers.
Put down the headset and wait for five to ten minutes.
Put the headset back on. You should see instructions on how to use gaze functionality in the headset.
If you can't see this message, please contact Meta Store support for further assistance.
Follow the on-screen instructions to pair your controllers to your headset.
Move your head to navigate menus. To select prompts, use the volume buttons.
Once the controllers have been paired to the headset, follow the on-screen instructions to complete the rest of the setup process.
We understand you do not want to return your device although, in the event this does not work, the next step would be getting in touch with our support team to explore your warranty options.
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