Can’t select “contacts only” for airdrop on MacBook Air

Both devices are logged into my Apple ID. My iPhone is set to “contacts only” and I can airdrop from my MacBook to my iPhone with no problem, but I can’t see my MacBook as an option to airdrop unless I set it to “everyone”. If I select “contacts only” for airdrop on MacBook, it switches back to “No one” when I navigate away. If I don’t navigate away, it still won’t show up as an airdrop option from my phone. If I set my MacBook to “everyone”, airdrop works properly. I would prefer to have my settings on “contacts only”, and I can’t figure out why this is happening.

I have an iPhone 15 Pro Max with iOS 17.5.1 and an M3 MacBook Air with macOS Sonoma 14.5. WiFi and Bluetooth are on and have been toggled on and off. Firewall is off. Devices have been restarted. I feel like it’s just a setting somewhere but I can’t figure out what it is. What am I missing?