Does the iPad setup wizard require a home button in iOS 10?
The first thing you have to do is unlock the device, which requires you to press the home button.

A thread on Apple Support Communities has a possible workaround, but I can't verify it:


  Once you download iOS10 and get to "Hello" screen, connect your iPhone to iTunes. Under iPhone>Summary page, there is an icon that says "configure accesibility".  Click on it and a window pops up, and enable "Speak auto-text" under "seeing" and "mono-audit" under hearing.  I THINK it should work with just choosing one or the other or any other options for those with seeing/hearing problems.  Click on done, and you see your vertual home button is back on "Hello" screen.


https://discussions.apple.com/thread/7667716