@Cammotion,

At what point in the app setup does it fail? Is the device brand new, or has it been setup previously or in the Tapo App?

If the device has not been setup before, the setup mode will start when it is first plugged in. After ~5min the setup mode will close the connection, and you need to either replug or reboot the device to reenable the matter setup process.

During the setup process you should also be able to enter the text version of the code into a text box. (I typically recommend this, as you can copy and paste the code in case the setup fails)

I would however, recommend first adding the device to the Tapo App so that the device can update its firmware. There have been quite a few updates and optimizations to make the matter setup process smoother. After the device updates, you can always reset the device to factory defaults to use only the Matter connection, or you can use the Matter setup option in the Tapo App, which will enable the matter pairing mode for the device.