Airdrop not working on my Mac / iPhone

Airdrop from iPhone to Mac or Mac to iPhone not working, even though both my iPhone and Mac are discoverable. I am using a iPhone SE 2020 with IOS15.1 and Macbook Pro with macOS Monterey V12.0.1. Bluetooth is "ON" on both devices, receiving set to "Everyone" on both devices and the firewall is set "Off" on Mac. The devices are sitting next to each other, but still not working, when I initiate transfer, it just says "Waiting" and nothing happens.

Anybody facing similar issue - any resolution available ?