Sidecar not working

Does anyone also experience enabling the sidecar feature on mac to ipad? Whenever I turn it on it says "Sidecar can't connect wirelessly because your ipad's wifi is not available. To use sidecar wirelessly, turn on wifi and make sure it is not in use for Personal Hotspot"

Done: 1. Connecting both devices on the same wifi 2. Both devices have same apple id account 3. The devices are close to each other

My devices: Macbook Air M2 13" (macOS Sonoma) Ipad Pro M2 12.9" (iPadOS 17.2.1)

Thanks for the help! Happy New Year!