Apple Pencil doesn’t respond in sidecar. Works fine otherwise.

I’m not sure why that should matter. My iPad Pro M2 is connected to my MBP M1 via USB-C (thunderbolt). And my iPad pencil reads only on the sidebar, but doesn’t work as a pointer within the Mac environment, neither as an extended display or a mirrored one… 

But in any case, even when my Mac is connected to my main WiFi, and the same as my iPad, my Apple Pencil still won’t work (anywhere besides the sidebar or other iPad apps…) 

Any tips anyone? Thanks in advance.

You may need to provide more details about the connections between your Mac, iPad and Pencil, but…

In my case the culprit was literaly in the "face palm" territory:

My iPad was accidentally logged into our secondary wifi network, unlike the Mac.