ipad air 2 locked with passcode message when connected to iTunes (mac), but it is unlocked

When I connect my new iPad air 2 via lightning cable to my Mac I get the message to unlock my iPad air 2 in order to connect, download photos, etc.

But my iPad air 2 is unlocked and displaying the home screen. I have tried switching USB ports, restarting the iPad air 2 and resetting by holding the power & home button down, but neither of these fixes the issue. Any suggestions?