NRF5340 Bluetooth Init Failed in Sample Apps: EINVAL -22

Using nrf5340 DK with v2.7.0 SDK + toolchain. Blinky app works fine.

Tried the sample apps:

- peripheral_hr

- peripheral_ht

Which both reproduced the exact same error. 

Process: Built a configuration for the sample app for nrf5340dk_nrf5340_cpuapp target and flashed to application core. All of this was done using nrf connect with VSCODE. Saw the error on COM6 (attached).

Attempted afterwards to flash the MCU core as well (nrf5340dk_nrf5340_cpunet) with no improvements. I am using the default configurations in prj.conf, which I assumed would function out-of-the-box. 

From what I can tell, the HCI driver is found, but there is an issue in bringing up the bluetooth subsystem settings.

Would appreciate any debugging help on this. 

D.D.

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