AirTag Battery Replacement w/Duracell
I had the same problem, and came here for support. I called Apple Support, and they are aware of the "bitter coating" issue on some batteries.
I fixed my Duracell battery to be able to work with my AirTags. Simply get a nail file or emery board and scratch away on the negative (-) side of the Duracell battery. The coating is about a 16th" (at most, probably less), and scrapes away within 30 seconds. After doing so, they work just fine.