Magic Trackpad is recognized as mouse?

I connected my new Magic Trackpad (USB-C) to MacBook and it connects only as mouse (the gray mouse showing when connecting). I could not figure out where I can set it to be recognized as a trackpad. As a result, none of the gestures work (no scrolling) and I cannot even set it to tap to click.

I have tried disconnect and re-pairing but that didn't work. Not sure what I am doing wrong here. It should just be recognized as Magic Trackpad?

This shows in System Information:

  Magic Trackpad:

  Address: D0:C0:50:BF:89:C8

  Vendor ID: 0x004C

  Product ID: 0x0324

  Firmware Version: 3.1.4

  Minor Type: AppleTrackpad

  RSSI: -42

  Services: 0x800020 < HID ACL >

I am running on Sonoma 14.7.2.

Thanks in advance for your help!