Pairing personal hotspot

Doesn't work. It's a Catch 22. I've now connected via USB but my iPhone doesn't show up on the dropdown list of networks showing on my MacBook ... UNLESS I turn on Bluetooth on both the iPhone and the MacBook. Then it shows up. But when I click on it on my Mac to connect, I get the message below. Still, my iPhone shows it is connected to via Personal Hotspot but I can't see any device that it's connected to. Any other ideas?

Never been an issue that I know of in Europe, certainly wasn't with my previous MacBook Pro and, as I wrote above, Personal Hotspot works with my iPad Mini5 as it should. Now here's the weird part ... it DOES seem to be working now even though (a) there's no Hotspot icon in my toolbar and (b) my wifi icon isn't illuminated, which I interpret to mean there's no wifi (or PH) connection. But again, I do have internet connection now so it appears to be working. Could it be correct that on the MacBook Pro 2020 there is no way to see from the Mac toolbar if one is connected, other than just connecting to the web and see if it is working? Again, it does show a PH connection in my iPhone so clearly it must be to my Mac since I've checked all my other devices. Any thoughts on that one?

Hmm, not so sure about Bluetooth. It was turned off when I connected using USB and I never did have any luck with it connecting via Bluetooth, which seems consistent with both the error/failure messages I was receiving and with Illaass reply above. What was new for me was that there is no indication on my Mac that I'm connected via USB to my iPhone/Personal Hotspot ... it's not showing in my toolbar as the usual "rings" icon, nor in my Network dropdown list as my iPhone, nor in Finder as my iPhone being connected via USB. Odd ... and very confusing and, as a result, very time-consuming. Thanks for your engagement.

Thanks. I'm up to speed on much of what's offered by Continuity but still don't see a solution for what they're now apparently calling Instant Hotspot ... except as I write above, to connect via USB. I've just sent an email to my cell phone operator to make sure that's not where the problem lies.