Wireless Carplay cutoff cellular data

I have been using wireless Carplay for over a year now without any problems but since last couple of days when connecting to carplay on VW MIB3 discovery pro unit iPhone cuts off the cellular data connection expecting there is a data plan at the unit hotspot but as I don't have a plan I’m left without the internet connection means no music, no maps, nothing:(

Occasionally the phone will ask whether to keep trying to get connected to internet this way or to switch to cellular.

I don't know if the issue is on VW or Apple side. I did try switching off the hotspot on MIB3 but then I can not connect wirelessly to Carplay. I did also try changing the settings according to the instructions here https://www.reddit.com/r/CarPlay/comments/g8mzgn/wireless_carplay_asks_me_to_temporarily_change_to/?utm_source=amp&utm_medium=&utm_content=comments_view_all but next time a get connected to Carplay I'm cut off from internet again.

Did anyone come across the same issue? Any solution for that?