macOS 13.3 and iPadOS 16.4 Users Report Issues With Continuity Features
Some Mac and iPad users who updated their devices to Apple's latest software updates are reporting problems with Continuity features like Universal Control and Handoff.

Since last week's release of macOS 13.3 and iPadOS 16.4, many users have taken to the MacRumors Forums, Reddit, Twitter, and Apple's Support Communities to voice their frustration at the lack of functionality after updating.
Users also variously report problems with Handoff, Universal Clipboard, and Auto Unlock and Approve with Apple Watch. Based on online reports, the main Continuity feature to be negatively impacted by the updates appears to be Universal Control.
To recap the feature, if you have a Mac and an iPad next to each other and signed into the same Apple ID, you can use the keyboard and cursor on one device across both of them. So a Mac's trackpad can be used over on the iPad just by swiping across, and the Mac's keyboard will become the iPad's input device. The reverse is also true of an iPad if you have a keyboard and mouse attached to it.
Barring a restore of the previous OS, suggested solutions that have worked for some users include: Signing out of one's iCloud account on both devices; disabling, restarting, then re-enabling Handoff/Auto Unlock with Apple Watch; turning Wi-Fi and/or Bluetooth on and off again; and toggling checkboxes related to Universal Control features.
Apple has not commented on the Continuity bugs, but it is likely aware of them and working on solutions. The company is rumored to be preparing to release iOS 16.4.1 for the iPhone, so it could release iPadOS 16.4.1 and macOS 13.3.1 in tandem. Such minor updates are typically focused on bug fixes and security improvements.
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