Handoff and Continuity not working between my MacBook Pro and iPhone

I have:

MacBook Pro 16 2019 - macOS Big Sur 11.0.1

iPhone 8 - iOS 14.2

Can't make the handoff and continuity work between these two devices.

AirDrop between these devices works perfectly. Both devices are visible on my iCloud accounts, location services are ON so I can find one device from another etc.

Tried almost anything I could find on the web:

• Signing off from iCloud, turning Bluetooth, Wi-fi and Handoff OFF, restarting, than turning everything ON and logging in again on both devices - DOESN'T WORK - also tried various combinations of this
• Removing the Bluetooth files from the Library/Preferences - DOESN'T WORK
• Reseting Network Settings on my iPhone - DOESN'T WORK
• Bluetooth pairing - DOESN'T WORK

This feature works between my Macbook Pro 13" 2015, and it worked fine with my Macbook Pro 13" 2019 I sold.

This is getting very frustrating now. Spent more than 5 hours trying to find a solution to this problem.

Can you help somehow?