I have an iPhone 13 mini (called Diprotodon) running 16.3.1  
I recently purchased a Mac Mini (Apple M2) (called MilliwaysMini) updated to 13.2.1.  
I transferred from my iMac to Mac Mini and have been setting it up and transferred my operations to this as my primary computer. This is using a Bluetooth keyboard & mouse.

I wanted to setup Continuity camera, but without much success so I took one step back to setup Bluetooth first.

The Mac Mini sees Diprotodon in nearby devices.

The iPhone 13 mini sees MilliwaysMini in nearby devices.

After many failed attempt I eventually got both to see the same code number and paired, although they show as Not connected.

When I try to connect I get a message "Connection Unsuccessful MilliwaysMini is not supported" and the only options is "Forget Device".

One potential complication - clicking on the ⓘ shows 16.3.0

I have Handoff & Continuity Camera enabled on the iPhone