Sidecar Authentication Error

I'm attempting to use my iPad Pro as a sidecar for my MacBook Pro, but when I select the iPad from the laptop's Airplay menu I get the error:

Unable to connect to "Steve's iPad.
The iCloud account does not use two-factor authentication.

The version of macOs for my MacBook is Sonoma 14.3.1 while for my iPad is 9th generation and 18.1.1 macOS. Bluetooth is on and I am connecting both devices to the same wireless network. I couldn't find out why I was receiving this message? Any advise?