iPad 10th Gen won't pair with Apple Pencils after reset

I have a 10th Gen Ipad and 2 x 1st Gen Apple Pencils and 1 x USB-C Apple Pencil (all compatible with 10th Gen ipad). The Ipad will not allow any of the pencils to connect.

Once upon a time, the 1st gen pencil paired and worked fine with the ipad. I just recently factory reset it to give to my daughter and now when I connect the 1st gen pencil (with proper apple lightening to usb-c adapter), nothing happens. No notification to pair, etc. Tried with 2nd 1st gen pencil Same results. I then purchased a new USB-C pencil (all official) and same thing.

I also have an ipad mini with the usb-c pencil pairs just fine with and a 1st Gen ipad pro which the 1st gen pencils pair just fine with.

I posted this in Reddit and another user stated they just purchased a 10th gen ipad and is having the same issue.

It would seem that at some point, a software update for the 10th gen ipad made pairing apple pencils not work. I have tried all the troubleshooting steps and have factory reset multiple times to no avail. I tried the lightblue app and was able to pair the 1st gen apple pencil to the 10th gen ipad . Unfortunately, the usb-c pencil doesn't show up in lightblue. This is definitely a software issue. Not hardware. The ipad is on the latest iPADOS update 26.2.