Answer to: Continuity camera won't connect wirelessly to iPhone, works fine when connected with cable

This question was already posted before with several replies but no solution. The discussion had been locked out which is why I'm re-posting it. I was able to solve it myself after having similar issues. Here are my suggested steps to fix if it is still a problem for you (mostly follows "documented steps," but you have to DESELECT "Automatic camera selection"):

1. Assuming you have enabled the "Continuity Camera" setting in your iPhone (Settings > Genera > AirPlay & Handoff > Continuity Camera - switched on), go ahead and connect your iPhone to your MacBook.
2. Open an app that requires a camera - I use either Photo Booth or FaceTime.
3. Select your iPhone as the "Camera" or "Video" Source for the App. This should "re-mount" the iPhone Camera back on your MacBook.
4. With the app still open on your Mac, go to "Camera" in Photo Booth or "Video" Menus, and "de-select" (clear the checkmark next to) "Automatic Camera Selection."
5. Close the apps and disconnect/unplug your iPhone from your MacBook.
6. Reopen the app/s for camera use. If it doesn't already select you iPhone wirelessly, select it from the "Camera" or "Video" Menus on the MacBook. It should work from that point on.

It seems "Automatica Camera Selection" will lock out the iPhone camera if you have previously selected "Disconnect" on your iPhone from the MacBook. Once I went through the steps above, my iPhone Camera was again available wirelessly for use regardless if Automatic Camera Selection was enabled or not after that.