Unable to Add Matter Device - Matter Server restarting

Adding my first Matter device (Matter over Thread) but it’s not working. I already have a SkyConnect and a Thread device (HomeKit). I just tried adding my first matter device using ios. I scanned the QR code iOS said connecting, setting up, then unable to connect to accessory. I finally got some logs on my matter server, seems to fail and restart the addon:

2025-05-05 19:05:40.245 (Dummy-2) WARNING [chip.ChipDeviceCtrl] Failed to establish secure session to device: src/controller/python/ChipDeviceController-ScriptDevicePairingDelegate.cpp:96: CHIP Error 0x00000003: Incorrect state
2025-05-05 19:05:40.245 (MainThread) ERROR [matter_server.server.client_handler] [549517529728] Error while handling: commission_with_code: Commission with code failed for node 5.
Exception ignored in: <gdb._GdbFile object at 0x7f826a8750>
Traceback (most recent call last):
  File "/usr/share/gdb/python/gdb/__init__.py", line 56, in flush
    def flush(self):
KeyboardInterrupt: 
[21:45:51] INFO: matter-server service exited with code 0 (by signal 0).

Edit: More fun, it seems to somehow break mDNS on the HAOS??? homeassistant.local stops working after trying to pair a device. I have to reboot HA to get it working again.