As strange as it may sound, the DJI Cables have a specific orientation. Note the little image of the controller on the cable end. Might not be the issue since I use aftermarket USB C-C cable both with an iPhone 16 PRO MAX and with an iPad ProM4 with no problem.
PS After writing this I did start the Mini 2 up, worked fine with iPhone 16 Pro Max, then reversed the cable shown below, and restarted the Drone and DJI Fly, still worked perfectly.
Unfortunately I have this issue with an iPhone 16 pro and a mavic air. Using the DJI USB C to micro USB adapter and a USB C to USB c apple cable. The phone does not recognize the controller or vice versa.
Ordered a micro USB to USB C cable that is coming tomorrow and will see if that works.