The fact that Continuity Camera is showing as on, even though you have turned it off on your iPhone, does not necessarily mean anything is wrong with your new MacBook Neo.
iPhone Mirroring and Continuity Camera are separate features, but they cannot be used simultaneously on the Mac.
Start by restarting both your MacBook Neo and your iPhone.
Make sure Wi-Fi and Bluetooth are enabled on both devices, that both are signed in to the same Apple Account with two-factor authentication enabled, and that Handoff is turned on.
Keep your iPhone nearby and locked while attempting to connect.
On your iPhone, go to Settings >> General >> AirPlay & Continuity (or AirPlay & Handoff, depending on your iOS version) and confirm that Continuity Camera is turned off.
On your Mac, quit FaceTime, Zoom, and any other apps that might be using your iPhone as a camera.
Next, open iPhone Mirroring from your Mac’s Applications folder and try connecting again. If it still does not work, open iPhone Mirroring, choose iPhone Mirroring >> Settings, and select Revoke Access to [your iPhone].
Then reopen the app and set up the connection again. This resets the pairing, so you will need to configure it again.
Apple’s official instructions for this issue are available here: