Open Radar

 
Steps to Reproduce:
1. Download Apples MultipeerGroupChat sample app from https://developer.apple.com/library/content/samplecode/MultipeerGroupChat/Introduction/Intro.html.
2. Build with Xcode 8 and install the app on two separate devices running iOS 10 (iPad Air 2's in my case). FYI: Bug is also reproducible when only one of the devices is on iOS 10.
3. Disable WIFI, and cellular on both devices. Make sure ONLY Bluetooth is enabled on these devices.
4. In the chat app create new room "one" and separate usernames for each device ("Ron" and "Dave" in my case).
5. Press the once the rooms are active on both devices press the magnifying glass icon in the upper left. In the browser select the username of the other iPad.
6. Press "Accept" on the other iPad when prompted to accept the Multipeer Connectivity session.
7. Watch the as the connection fails to establish. 

(Note: the same thing happens when using an app that uses the MCNearbyServiceAdvertiser and MCNearbyServiceBrowser)

Expected Results:
The MCBrowserController should report the connection to be "Connected" after a short wait. The multiplier connectivity framework should have established a reliable Bluetooth connection so you can send chat messages back and forth.

Actual Results:
MCBrowserController either reports the connection to be "Declined" after a long wait or things just time out altogether.

Version:
iOS 10

Notes:

Configuration:
iPad Air 2