AirDrop on iPad Air 5 and iPhone 11 Pro stopped working after update to latest iOS

Before I begin, please don’t waste my time by telling me How to use AirDrop on your iPhone or iPad!

i know very well how to use AirDrop. I’ve been using it for years without major problems. But now, after updating to the latest iOS, AirDrop suddenly broke on my iPad. It’s running iPadOS 17.2 (21C5029g) my iPhone is running iOS 17.2 (21C5029g). I can’t AirDrop between my Devices. When I try to AirDrop something from my iPad to my iPhone, it gets declined instantly and it shows “failed”. On my iPhone, my iPad doesn’t even show up in the list.

What I’ve tried (on both devices!):

Cycling Airplane mode

reboot

Turned WiFi and Bluetooth off, restarted the devices, turned WiFi and Bluetooth back on

Reset Network settings

Despite these troubleshooting steps I found, it still doesn’t work. With any type of file. From a simple photo to an ipa.