I also found this page https://developer.apple.com/documentation/externalaccessory which clearly states "iPad and iPhone apps running on a Mac with Apple silicon can’t connect to external accessories using this framework. You may continue to link apps to this framework and run other features on Apple silicon."...
Wait, what kind of app were you testing with? Were you using the "iOS on macOS" compatibility layer? Or was this a "native" app (either Mac Catalyst or AppKit). This terminology "iPad and iPhone apps running on a Mac" generally means "apps running through the compatibility layer". If the framework didn't work at all, we would have just left of macOS support. Similarly, we wouldn't have include the warnings about the bluetooth picker on macOS if bluetooth didn't work at all. Before you give up on this entirely, I'd recommend testing this in fully "native" app.
I'm not using the BluetoothPicker. Instead, I ask the users to pair the Bluetooth adapter to their iOS device before using the app.
I assume you meant macOS here, correct? Also, you should be testing the accessory with the mac being the ONLY accessory that's paired with it. Honestly, I'd probably turn of bluetooth on "everything" around me except the mac. See comments below for more on that point...
Having said that:
Is there a different way to connect and use a MFI Bluetooth device that would work on a Silicon Mac?
That depends on how exactly the accessory works. Lots of accessories are multiplatform, which typically means they implement multiple communication "paths"- one for MFI and a different one for other platforms. That might sound like extra work/effort, but most of the hardware controllers have plenty of unused "capacity" for this and most of these accessories only support one connection at a time, so the extra interface isn't doesn't actually create more "work".
As a side note on that, make sure you've unpaired/disconnected the accessory from anything else. If another controller (like your iPhone) was also active, I could see that causing this kind of thing**:
The Bluetooth pairing process on MacOS (I updated to the latest v14.5) also seems a bit weird - it asks for PIN code confirmation, but almost immediately closes that confirmation window (without a chance to click OK). After that the Bluetooth adapter is displayed as "Connected" for about a second and then switches to "Not connected" state.
**As an even broader comment, if you haven't worked with hardware before one of the best tips I can give is to do EVERYTHING you can to make the configuration as simple as possible and rule out ANY failure you can think of. From painful experience, it's FAR to easy to waste lots of time "investigating" something, only to discover that the ACTUAL problem was a dumb quirk/side effect that you could have just avoided by tweaking your configuration.
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Kevin Elliott
DTS Engineer, CoreOS/Hardware