@mm-418 you get a kudos for some solid troubleshooting. Perhaps we can pin this down if I shed some light on mesh and why it happens.
The trigger, in all scenarios, for a GR access point to start a mesh is the lack of a working IP address. For example, if you want to setup a remote AP as a mesh repeater, plugging in the power without an ethernet connection counts as a lack of IP address and the mesh procedure starts. The focus should be on why the IP assignment isn't working as a next step.
It is odd that the problem follows the access point, but I think that is a strong clue. Are you using DHCP or a static IP? If you can, run a port mirror capture on the switch port the AP is connected to as this will give some indication where the issue is occuring. My best guess is that there is a config to whitelist MAC addresses or something failing at Layer 2.
The fact the GR comes online as a mesh repeater indicates you are working, at the least, with a functioning piece of hardware. There is a small chance the ethernet jack is facing a problem, hence the IP assignment failure...but if it is getting PoE through the port it must be functional to some degree.