Brand new out of the box MacBook Air M2 and I can't set up Apple Pay. Says that my security settings have been modified. Ran the statue security utility and it's set to the highest as Apple's support pages says.
Don't know what else to do.
MacBook Air, macOS 12.5
I confirm, the solution really works. In my case that was refurbished machine with Apple Pay (wallet) attached to an old hard drive. So when you trying to setup Apple Pay and got this message, especially if your OS is recently reinstalled, you need to check "Install system data files and security updates" and only after that trying to set up Apple Pay on your Mac. It should offer you to reset wallet and delete old cards.
I withdraw the question. Found the solution on another post. System Preferences -> Software Updates -> Advanced -> Uncheck then recheck "Install system data files and security updates."
Apple Pay Disabled because Security Settings have been modified
