New USB-C Magic Keyboard and Trackpad are not working correctly

I received the brand new Magic Keyboard with TouchID and Magic Trackpad today, both with USB-C port, after connecting them to my Mac Air M3, it seems they both failed to work as a magic device, problems includes:

1. Once connected via USB-C cable, they are not auto connected via bluetooth, I have to find them in bluetooth panel and connect manually
2. The TouchID and FN keys don't work at all, it seems to be a simple third-party keyboard, without any Apple specific features
3. All gestures, including 2 finger slide, 3 finger exposure and show desktop, don't work with Magic Trackpad, it seems to be a simple mice but not a touch pad
4. Changing the movement speed of trackpad in System Preference does not affect the speed of Magic Trackpad

I'm wondering if this is a hardware issue or I need some software configuration.