Download the windows update assistant and update your OS. Here's the link: https://support.microsoft.com/en-ca/help/3159635/windows-10-update-assistant
This worked for me.
Guess what? When Setup said my PC was not ready, it apparently wasn't ready.
I tried the Windows 10 Update Assistant work around. Yes, it allowed me to start the update to 2004. However, in the end, it finally failed. I'll give kudos to Microsoft, in that the Update Assistant was able to return me back to 1909 with no ill effects.
I am still left wondering why, even after all these many months since 2004 was officially released, 2004 isn't yet ready for my PC. I have done many feature updates over the years, without delays or problems. So, I would say, my PC is rather standard. No odd or unusual hardware and with that, no odd or unusual drivers (ie, I have all Win 10 drivers).
As others have said, it would be great if Setup also gave a REASON for not being ready. The Update Assistant also left not a clue as to why if failed. And Microsoft should at least tell me WHEN 2004 will be ready.