Please stop doing a factory reset. All you’re doing is erasing error logs that Sonos could read to assist you. 

Try a reboot of your router. It might be useful to know what make and model of router it is, it sounds as if it isn’t allowing proxy IP addresses through the Arc.

I can replicate the error everytime, so I will be sure to not reset it again to preserve the data.

The two routers I have tried to connect on are an Orbi (I have a functioning arc with surround in this system working already) and a Netgear Access Point Wax630.

So you have two separate and distinct networks? That seems challenging. 

Try temporarily unplugging that router that your Sonos is not connected to while going through set up, I’m wondering if it may be causing enough interference in the 5 GHz range to block the surround speakers from properly connecting to the Arc. 

I would also recommend that you call Sonos Support directly to discuss it.

When you speak directly to the phone folks, they have tools at their disposal that will allow them to give you advice specific to your network and Sonos system.

I attempted to set up on two networks in different locations, at home and at work.  My work network is where I have the problem.  I brought it home to try and eliminate the router as being the issue.

Did you disable the WiFi (actually the whole radio) on the Arc?

That is what it uses to connect to the Sub / Surrounds on a private 5 GHz link.

Glad to hear they’re two distinct locations, that eases my mind a bit…but when you say a work network, that raises some flags. Are you in charge of the work network? It’s not uncommon for IT folks to add certain security steps that could be blocking the ability for your Arc to be sending data to your surrounds. Not to mention @Stanley_4 comment above, a good one. 

I’m still going to recommend that diagnostic and phone call, though. 
 

Edited to add…if it’s not working at home as well, it’s unlikely (ok, let’s say it was a wrong thing to say) that it’s a network issue at work, otherwise it wouldn’t be failing in both places. All which makes @Stanley_4 guess better than mine…and still increases the need for that phone call. 

Wifi is not disconnected on the arc.  The arc is set up in my network and works on both.  Same with the other speakers, wifi is on and they work as surround or with a sub, just as long as it is not connected to the arc.

My work network is brand new and was set up by me. 

I will definitely try customer service next and see ehat they say.