Make sure it also has a “key in a phone” icon. This means HA will make the Thread credentials available for downloading to your phone that is running the HA Companion App.
The Matter Server does not need Thread credentials when using the HA Companion App to commission a device, so being set to false is not a problem. The HA Companion App however does need to get the Thread credentials from HA and the Companion App has a button that you have to use to either sync or send the credentials to the Companion App.
Thank you very much for your reply. That was helpful information. It turns out that you need to have an iPhone 15 as minimum to be able to do this with the companion app from a iPhone. I have a 14
Fortunately I do have an Apple TV 4K Gen3. That would allow me to set it up in there first and then bring it into Home Assistant. It feels like the long way around, but I don’t have another option at the moment.