Looks like you’re using Android, so make sure you have sync’d the Thread credentials to your phone. The Matter Server logs might show additional information about what is failing.
You can determine if the device is getting Thread credentials (and an IP address) by installing an mDNS discovery app (I use Discovery for MacOS or Flame for iOS, but there is also Service Browser for Android). Look for the _matter,_tcp service and look for the fdxx-prefix IP address of your Thread subnet (different than your LAN). If the device appears, you can try to ping6/traceroute6 to check for network issues (I unplug mine while pinging to make sure it’s the right device). If it doesn’t appear, it likely isn’t getting the Thread credentials or has a bad signal strength.