Airdrop not working as it should be

Hi,

I used to use Airdrop feature excessively to transfer files in and out between my iPhone and Macbook. Suddenly, it started to give (Failed) or (Declined) when I used it. After many trials, it sends the file, I may fail to send it 10 times before it succeeds.

I doubted an update was required, I updated both mobile and laptop to the latest versions, but it still failed.

I also removed last applications I installed on iPhone, but it didn't solve the problem.

I need to solve this badly, it is a handy option while I'm working as I am usually in a hurry.

Your help is appreciated!

iPhone Model: iPhone 14

iPhone iOS version: 17.4.1

Model: Macbook Air M2

Macbook OS: Sonoma 14.4.1