Problems using continuity between MacBook Air M1 and iPad Pro M1

I have recently used Continuity between my MacBook Air M1 and my iPad Pro M1, so that I can use my Macs Keyboard and TrackPad to work natively on my iPad and easily witch between.
However, after using Sequoia and iPadOS 18 in beta, and now in final version, I have not been able to do so anymore.
My setup is: MacBook Air M1, connected to a Studio Display via Apple Thunderbolt Cable and iPad Pro Connected via USB Cable to display. All on same network and Bluetooth Enabled. Trackpad and Keyboard are Apple’s Bluetooth kind.
Any idea anyone?