iPad mini cannot use esim

I have an iPad Mini 6th gen WiFi+wireless, purchased at Apple Store (it was actually an exchange of a broken device). I tried to load an eSIM, from different providers (Tello, Tmobile). When I use the QR code on the iPad, it says the eSIM cannot be used on this device. For both carriers the device is compatible with their eSIM. The device offers to setup a plan with att, which is my cellphone provider on the same Apple ID (also the cellphone is from Apple Store and shows to be unlocked). Att confirms the device is not locked by them. Any suggestion on the cause/resolution of the issue? OS is updated to 17.4.1, WiFi is strong and high speed, I have tried restarting, etc