Sidecar and bluetooth issue

Hi, I have a late 2016 MacBook Pro (Monterey 12.3.1) and iPad Pro 2021 (15.4.1). I have been trying to use the sidecar function but after trying what seems like every option available, its not working. I used to have sidecar as an option under system preferences, but realized that has been changed and now found under 'displays' instead. However, I dont have that option either. Only option I see under displays is universal control, which doesnt seem to be working even though handoff is turned on both MacBook and iPad. Lastly, I can't seem to pair my MacBook and iPad via bluetooth. When I try to pair from my iPad it says 'pairing unsuccessful" and "[name of Mac] is not supported". Whereas when I pair from MacBook, it shows connected for only 1 second before going back to not connected. I seem to have everything not working; sidecar, universal and bluetooth. I have logged out of my Apple ID, updated both devices, restarted etc and yet nothing works. Please let me know if anyone knows how to fix even one of these problems! thank you.