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Ok, I had the exact same issue while everything looking OK and following the guides.
Mine was slightly different in that the first peer could connect but the 2nd one (Ipad) could not perform the handshake

I re-did the whole thing a few times but no dice.

I then thought if the instance is adding the peers automatically or is that not happening on the back end.
I removed the 2nd peer from the instance
Saved->apply
Added the 2nd peer again
Saved->apply
I then got the handshake to work