After updating to iOS 8.1.2 it asks for a passcode, which I never used, such that I now have an $800 paperweight!

I recently updated to the iOS 8.1.2, but after rebooting, the iPad demands a passcode, which was never used on this iPad. I cannot bypass the passcode question. It is now an $800 paperweight. Apple support of course wants money for the obviously poor code in their update!  Currently I am trying to reset it to factory settings, losing almost everything I had on it, since it was not properly backed up. However, it seems stuck on enter passcode, even after resetting it!
If anyone else has a solution to this, would love to hear from you. How does Apple get away with this stuff? (I dare them to be honest and post this!)
Other ideas?
<Edited by Host>

Hmm, I did receive an email saying that the thread was deleted, but did not explain why for some reason. It sounds like the Level 7 guy caused this. I will call Apple tomorrow to find out who is responsible. And see if I can lodge a complaint against that user. Maybe it was because of what the Level 7 guy was saying.
There was useful information posted in that threat that addressed the issue that I am experiencing. I will try to reiterate from the apple website, it says.
Recovery mode
If you've never synced your device with iTunes, or haven't set up Find My iPhone, you'll need to put your device in recovery mode. Then you'll restore your device as new or from a backup.
This will erase the device and its passcode.
Disconnect all cables from your device.
Hold down the Sleep/Wake button, then "slide to power off" to turn off your device.
Press and hold the Home button and plug the device into your computer. If your device doesn't turn on automatically, turn it on. Don't release the Home button.
Continue holding the Home button until you see the Connect to iTunes screen.
If iTunes doesn't open automatically, open it. iTunes will alert you that it has detected a device in recovery mode.
Click OK. Then restore the device.
If your device doesn't go into recovery mode, try steps 1–4 again.
They suggested that I try this over again until it works. It did not work for me the first time.

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