nRF5340 - LESC OOB pairing

Hi,
After successful connection to custom nRF5340 peripheral, among pairing options under nRF Connect For Desktop Bluetooth LE (v4.0.4) I checked this one.

Pasting any random 32 char string I get peripheral printlog

<inf> ble: secure pairing accepted
<err> bt_smp: reason 0x4

and central printlog

Authentication failed with status BLE_GAP_SEC_STATUS_CONFIRM_VALUE

I know Out-Of-Band (OOB) is an association model where Bluetooth radio itself is the "Band" and a secret needs to be exchanged out of it to be secure.

What is meant to be the secure OOB link in this case ?
Can anybody explain this interface and how to use it ?

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