Unable to use iPhone to create signature on Mac Preview

Hi,

I've started facing this issue where my Mac would not allow me to choose my iPhone to create signature in Preview. It displays the following message "A trackpad or camera is required to create a signature". Import from iPhone menu in Preview is greyed out as well.

This started when I used Preview to create a signature for the first time. I was prompted to allow using my iPhone. It worked, and I was able to create a signature. But when I tried adding another, it did not allow me and started displaying the error message.

Not sure if it is relevant, but I was unable to use my iPhone to make FaceTime video calls.

Part of my troubleshooting, I did the following:

• Ensured both my iPhone and Mac are running latest OS
• Updated my iCloud credentials
• Tried connecting iPhone and Mac over bluetooth --> this failed for unknown reasons even though I tried multiple times adding Mac from iPhone and vice-versa
• Rebooted both my Mac and iPhone
• Disconnected and reconnected the same wi-fi

I did not reset my iPhone or sign out of my Apple ID as it would require complete setup of my device including my cards in Apple Wallet.

Any suggestions that can fix this without having to reset/ sign out of Mac/ iPhone....

Devices:

m1 Mac mini 2020 running MacOs Ventura 13.0.1

iPhone 13 Pro running iOS 16.1.1

Thanks

Siddharth