Between three people we have been using 2 switches, 1 switch OLED, and 2 switch 2s, and a variety of local features have just not worked or rarely.
We have tried:
Smash Ultimate local play (between the switch 2 and OLED)
Pokemon Sword and Shield trading, raids, and the max raid den (all except 1 of the switch 2s. These worked selectively, and have only worked if a Switch 2 was involved)
Also not working seems to be save data transfer, with the only thing working being sending a game save from Switch 2 to the switch/switch OLED, any other transfers specifically removed the B button prompt to cancel but timed out eventually, and this is the bigger concern, since the cloud transfer doesn't support main series Pokemon.
We've tried various combinations of consoles, restarting, making sure all games/consoles are up to date, all of the standard troubleshooting, and want to know if anyone has a solution, or at least if anyone else has been experiencing this. First noticed roughly 2 weeks ago
Edit: The only situations that are working are a switch 2 being "host" (lead in a raid or sending the save file). Any other attempts between the switch/switch OLED without a switch 2 involved, or the switch 2 being on the receiving end of the interaction.