If your router uses MAC address filtering or a MAC address whitelist, Apple’s Private Wi-Fi Address setting can cause connectivity problems.
When Private Wi-Fi Address is set to Fixed, the iPhone, iPad or Mac uses a private MAC address instead of the device's original hardware MAC address. This address normally remains the same for that particular Wi-Fi network, but it is still different from the hardware MAC address.
When it is set to Rotating, the private MAC address changes periodically. If your router has been configured to allow only specific MAC addresses, the router may no longer recognise the device after the address changes and can prevent it from connecting to the Wi-Fi network or accessing the Internet.
Use private Wi-Fi addresses on Apple devices - Apple Support (IN)
This can also affect devices and services that depend on local-network connectivity. For example, AirPlay from an iPhone or iPad to an Apple TV or compatible Samsung TV could potentially be affected if the devices end up being treated differently by the router or network because of MAC-based access controls. Apple itself recommends avoiding MAC-address filtering where possible because Private Wi-Fi Addresses can conflict with network configurations that rely on specific MAC addresses.
Therefore, if your home router uses a MAC whitelist, the safest configuration is generally to set Private Wi-Fi Address to Off for that particular home network, or alternatively add the device's current private MAC address to the router's allowed list. Note that adding it to the whitelist is less suitable when Rotating is enabled because the address can change again.
In short: MAC whitelisting and Rotating Private Wi-Fi Address are fundamentally incompatible unless the router is designed to accommodate changing MAC addresses.