Ahh I have the same problem! Obviously not one of the popular problems on these forums since I don't see a lot of posts. So for me, text forwarding was working perfectly but now experiencing same issue after having to erase settings on iPhone to fix another issue from a wonky app. Text message forwarding option shows up on iPhone with toggle switch for each device, but when attempting to connect on Mac, message app opens, but no popup is displayed. When attempting to connect on an iPad it gives: "...enter the code "(null)" on your iPhone now."
I've tried logout/login on iMessage all around. Nothing.
I've tried logout/login to iCloud login all around. Nothing.
I've tried resetting network settings on iPhone. Nothing.
(Power cycled each device in between logout/logins.)
Tried disabling bluetooth on all devices and repeating. Nothing.
Tried disabling wifi (on iPhone only) and bluetooth (all devices) and repeating. Nothing.
Continuity is very much working on the devices as Copy/Paste, Phone Calls, etc. are all function perfectly.
Running Console on Mac when attempting to pair devices (the enable text message forwarding from iPhone) shows a very clear (and consistent) "Decryption Error" from the identityservicesd library, and public/private decryption failed 😟 (yes it includes a frowny face, which is really how I know I'm in trouble). It seems like a key/pointer/something changed/corrupted/who knows, as a result of the reset and now I'm not sure how to get the devices to acknowledge the change or at least look in the same place.
Is there a way to reset/update public/private keys for devices for this type of activity? I'm reluctant to start randomly deleting keys from the keychain access (I think I read someone suggested that somewhere). Since I'm a sad newbie to the whole Mac stuff I'm not really sure what to do anymore short of full wipe of everything. Not even sure that would solve the problem if restoring things from backups. Help!