#Network Transfer Feature - Bugged? ("Check Other Xbox")

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lucid tendon
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Greetings all. Searching high and low for anyone who has this same scenario - I own 2 Xbox consoles (Series X and Series S) and want to use the Network Transfer install to copy games back and forth through LAN. All prerequisite settings are enabled on both consoles and each device sees the other from the Network Transfer menu.

On both consoles when I select the opposite console, it does not load the games or apps and instead gives the error message "Check the other Xbox". Its mind boggling - Both consoles are of course on the same LAN (they wouldnt see each other otherwise), NATs are open, hardwired to same switch/router. Consoles have different System names, using different ports, etc.

I have even gone the step of resetting both consoles (keep games & apps). Neither console is currently enrolled in the insider program or developer mode, and both are running the same Xbox OS version (latest). Is this feature bugged? Is there something that can be done to fix? This feature used to be great, saves me a ton of bandwidth usage when I want to download a game just once and copy it without having to slowly connect/reconnect external drives.