Iphone Mirroring - Unable to connect to iPhone

I’m experiencing an issue with the Screen Mirroring feature between my MacBook Pro M1 and iPhone 13 Pro Max. Here are the details of my setup:

• MacBook Pro M1 running macOS 15.1 (24B83).
• iPhone 13 Pro Max running iOS 18.1.
• Both devices are connected to the same Wi-Fi network.
• Bluetooth is enabled on both devices.
• Two-factor authentication is set up and working.
• Region: Serbia.

Despite meeting all the conditions, my MacBook cannot detect my iPhone for mirroring.

The options "Not Now" and "Try Again" appear, but the iPhone is not recognized at all.

Additionally, I have another iPhone (SE 1gen) and an iPad on my iCloud account, if somehow that is causing a problems.