Meraki support rolled the firmware back to 16.16.9 and the Z3C activated immediately. Support said there is an active investigation and until that is resolved we will have to keep the Z3C on this firmware. For those who have this same issue you will need to call Meraki Support to reach this firmware level as you cannot do this on your own.
Also worth noting, we have other Z3C devices on the newer firmware versions and they work fine, but those have been activated for a long time so maybe ths issue is just during activation?
Also under known issues I am seeing this regarding the Z3C:
- MX67C, MX68CW, and Z3C appliances may encounter an issue where they are unable to communicate with the integrated modem. This state can be cleared by rebooting the device.
- When MX67C, MX68CW, and Z3C appliances are repeatedly unable to communicate with the integrated modem, they will attempt to reset the modem to restore connectivity. In some cases, this reset procedure may fail, requiring the appliance to be physical power cycled to restore connectivity with the modem.
- Due to an MX 17 regression, the integrated cellular modem on MX67C, MX68CW, and Z3C appliances may fail to acquire an IP address via DHCP. This can be resolved with a physical power cycle of the appliance.
- MX67C, MX68CW, and Z3C appliances may erroneously detect a SIM card as missing. This state can be cleared by rebooting the device.
Either way I want to give a shout out to Meraki support, we are now able to hit some deadlines before the holiday break so we consider this a big win. It may be worth updating the known issues to say "revert back to older firmware" as everything listed in known issues does not state this.