I deleted CarPlay off my phone and did a full reboot. I also unpaired the blue tooth from my car dash under the settings menu, and erased all information related to my car. Started the car again, and plugged the iPhone into the USB port. It recognized my Kia MOTORS (had to click accept) as well as - now it also says, HANDSFREE - something that wasn't on my previous iOS versions. The next day when I got in the car it didn't recognize the phone like it did before when the car starts up, so I checked the blue tooth and had to click something (sorry I should have written it down) to remember this phone. Now it works great. Also make sure you don't have a dud cable. One of the iphone cables I was using had a little black tick on one of the pins that goes into the phone - this is a blown cable and may not connect properly. Got a new cable and all work well.
Seems like for 11.2.6 on some phones, you need to delete all carplay information and then re-add the phone.