I had to additionally set a static IP in the devices yaml file as well as changing to status_use_ping. Slightly annoying as I could ping the ESP32 device at the IP address it should be but I found without this the ESP32 would show online initially after installing but then go offline even though could still ping it.
It seems to now seem steady online, but I’ll monitor it. My HomeAssistant server is in the same subnet as the ESP32 device.