IOS26 Continuity/Calling from other device broken?

I used to use my iPhone16 and MacBookPro in perfect sync and handoff calls/initiate calls. Then I upgraded to IOS26 (26.0.1) on the iPhone and Tahoe 26.0.1 om the MBP. I tried to initiate a phone call - call failed (but the iPhone *was* calling, but I could not hear it in the MBP.

I have verified

SAME NETWORK

SAME USERID

Distance (< 1ft)

Facetime allows calls from other device

iPhone allows calls from other device

Basically I ran the checklist here

Make sure that your Mac, iPhone and iPad meet the Continuity system requirements. Your devices must also be near each other and set up as follows:

• Each device is signed in with the same Apple Account.
• Each device is signed in to FaceTime with the same Apple Account.
• Each device has Wi-Fi turned on.
• Each device is connected to the same network using Wi-Fi or Ethernet.
• On your iPhone, go to Settings > Apps > Phone > Calls on Other Devices, then turn on Allow Calls on Other Devices.
• On your iPad, go to Settings > Apps > FaceTime > Calls from iPhone, then turn on Calls from iPhone.
• On your Mac, open the FaceTime app, choose FaceTime > Settings (or Preferences), then select Calls From iPhone.

If your network provider supports Wi-Fi calling on other devices, you can set up those devices to make and receive calls even when your iPhone isn't turned on or nearby. Find out more about Wi-Fi calling.

Any idea's on what is broken now?