The “waiting for device” message during the identity issuing flow in the Desktop Wallet indicates that the Desktop Wallet is waiting for a Ledger device. To proceed with the flow, a Ledger that was set up according to our instructions here instructions must be connected.
The Ledger device is required to store your private keys on when working in the Desktop Wallet. If you want to work without a Ledger device, you can consider using a Mobile Wallet instead. Those store the private keys in the app itself.