Continuity Camera not working with MacBook Air M1

Continuity Camera not working via wifi or cable connection.

Continuity Camera used to work via wifi AND cable connection between MacBook AIR M1 2020 (Sonoma 14.7.2) and iPhone SE – 2nd Generation (iOS 18.7.2).

I followed advice from many different threads without any success.

> Both devices are on the same wifi network

> Bluetooth is turned on on both devices

> Cable is connected

> I have restarted both devices

I use QuickTime Player to test camera – New Movie Recording > Select Camera (iPhone Camera does not show in drop-down list – Although iPhone Screen and Speaker show up.

Would appreciate any concrete ways to solve this issue.

Thank you.