I believe there is an issue with the stereo firmware and the ability to communicate with the iOS in later phones. I think there is a firmware update for the stereo that can resolve this.
If you have an older iphone, or alternative smart device, you could pair that and try stream music, it probably will work.
Try removing all but the English files on the USB update , it tells you which two to keep on the destructions on the website.Then check your Iphone is running latest IOS.
It will give a message on the screen if no firmware update is required.