Cannot enable personal hotspot on iPhone

Noticed this issue after updating to MacOs Big Sur. I'm getting the error below while connecting to the hotspot via WiFi. The connection is working fine through a USB cable.

Tried all methods mentioned in this support article: https://support.apple.com/en-us/HT203302

The WiFi hotspot through a regular Android phone seems to be working fine. I have an iPhone SE running iOS 14.4