Can I use iOS 13+ without creating a passcode?
Cancel passcode options, go back (top-left button) until Touch ID setup, and don’t set up Touch ID (skip). Then when prompted for a passcode, choose Passcode Options and an option will exist for not setting a passcode.

If you can’t go back to Touch ID setup, enter a passcode to get through setup, then once the device is set up, go to Settings and disable Touch ID, then you can turn off passcode.

The text at the top of the page in your photo is different depending on whether you have enabled Touch ID or not. In this case, you have enabled Touch ID, therefore a passcode is required. If you don’t use Touch ID, you have the option for no passcode.