Bluetooth hci_usb Sample Enable Extended Advertisement Not Working

Hello, we are trying to receive BLE extended advertisement pakcets from Thingy53 using a nRF52840DK as a HCI controller with a Raspberry Pi 5. I just added this one line in the hci_usb sample's prj.conf file:

CONFIG_BT=y
CONFIG_BT_HCI_RAW=y
CONFIG_BT_HCI=y
CONFIG_BT_LL_SOFTDEVICE=y
CONFIG_BT_CTLR_ADV_EXT=y
CONFIG_BT_EXT_ADV=y
CONFIG_BT_OBSERVER=y
CONFIG_BT_CENTRAL=y
CONFIG_BT_CTLR_PHY_CODED=y
CONFIG_BT_CTLR_PHY_2M=y

CONFIG_USB_DEVICE_STACK=y
CONFIG_USB_DEVICE_PID=0x000B
CONFIG_USB_DEVICE_BLUETOOTH=y
CONFIG_USB_DEVICE_BLUETOOTH_VS_H4=n
CONFIG_USB_DEVICE_INITIALIZE_AT_BOOT=n

# We dont want any console or CDC ACM that may cause BlueZ to not detect hci_usb
CONFIG_SERIAL=n
CONFIG_CONSOLE=n
CONFIG_UART_CONSOLE=n

# Workaround: Unable to allocate command buffer when using K_NO_WAIT since
# Host number of completed commands does not follow normal flow control.
CONFIG_BT_BUF_CMD_TX_COUNT=10
 as suggested by the extended_adv/scanner sample from zephyr. The firmware can be built and flashed to the board.

After I connect my board's usb port to the Pi and ran

bluetoothctl list
, I can see my DK's address appeared as one of the controllers. However, after selecting it as a default HCI controller and ran 
scan on
, I got the following output from btmon:
bluetoothd[3118]: @ MGMT Command: Start Discovery (0x0023) plen 1         {0x0001} [hci1] 59.577249
        Address type: 0x06
          LE Public
          LE Random
< HCI Command: LE Set Random Address (0x08|0x0005) plen 6                       #1 [hci1] 59.577283
        Address: 2A:93:5F:24:0F:B7 (Non-Resolvable)
> HCI Event: Command Complete (0x0e) plen 4                                     #2 [hci1] 59.579192
      LE Set Random Address (0x08|0x0005) ncmd 1
        Status: Success (0x00)
< HCI Command: LE Set Extended Scan Parameters (0x08|0x0041) plen 13            #3 [hci1] 59.579214
        Own address type: Random (0x01)
        Filter policy: Accept all advertisement (0x00)
        PHYs: 0x05
        Entry 0: LE 1M
          Type: Active (0x01)
          Interval: 11.250 msec (0x0012)
          Window: 11.250 msec (0x0012)
        Entry 1: LE Coded
          Type: Active (0x01)
          Interval: 33.750 msec (0x0036)
          Window: 33.750 msec (0x0036)
> HCI Event: Command Complete (0x0e) plen 4                                     #4 [hci1] 59.582187
      LE Set Extended Scan Parameters (0x08|0x0041) ncmd 1
        Status: Invalid HCI Command Parameters (0x12)
@ MGMT Event: Command Complete (0x0001) plen 4                            {0x0001} [hci1] 59.582211
      Start Discovery (0x0023) plen 1
        Status: Invalid Parameters (0x0d)
        Address type: 0x06
          LE Public
          LE Random

I think the problem is still around extended advertisement features, and specifically about these parameters. But I have enabled coded phy and I think LE 1M should be default supported anyway. Is it because the scan interval/window combination here? How can I debug further? I am running with bluez5.82.

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