iPhone 12 Max Pro not connecting to Bluetooth 4.2 device.
I have my iPhone X and my iPhone 12 Max Pro in front of me (both with iOS 14.3), along with a 3rd party Bluetooth 4.2+ device (K9). Both iPhones are on. I turn on the Bluetooth device (K9) and both iPhones see it available for pairing. When attempting to pair the iPhone 12 to the device it displays an error (see photo).
The iPhone X pairs quickly to K9 without issue. Both iPhones pair with my Apple Watch and are both currently paired to another 3rd party Bluetooth device (Ember 2.0 Mug).
Is iPhone 12 hardware having issues with backwards compatibility to Bluetooth 4.2?? The Bluetooth specs state 4.2 is fully backward compatible with 5.0 devices. Again, my iPhone X with identical iOS version pairs without issue.
Apple Inc.: Please respond with A SOLUTION or FULL EXPLANATION to my problem, not a copy/paste from some Google search or level 1 tech support doc telling me to reset my network settings (I have already done that) or restore to factory settings (I have done that already as well) or some other deflection of the issue. I am going to return my faulty iPhone 12 in one week to get my $1399 refunded otherwise.