I have no problem connecting via WIFI, but can't connect via USB. I've turned on the personal hotspot and selected USB only, but the IP address on LIVE FACE is still 127.0.0.1 on my phone.

Probably not a lot of help, but I've always had issues with USB connection.  However, ethernet works and works every time and I would suggest if you don't want to use wi-fi it's your best bet (I can't say it's better than my own wi-fi set up because it isn't, but it's what I use almost exclusively nowadays).

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Alienware Aurora R16, Win 11, i9-149000KF, 3.20GHz CPU, 64GB RAM, RTX 4090 (24GB), Samsung 870 Pro 8TB, Gen3 MVNe M-2 SSD, 4TBx2, 39" Alienware Widescreen Monitor
Mike "ex-genius" Kelley

Is your WIFI better than the Ethernet connection? I have to think that anything wired would produce better results.

I don't notice any difference.  Then again, I'm practically sitting on top of my router here when I capture.

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Alienware Aurora R16, Win 11, i9-149000KF, 3.20GHz CPU, 64GB RAM, RTX 4090 (24GB), Samsung 870 Pro 8TB, Gen3 MVNe M-2 SSD, 4TBx2, 39" Alienware Widescreen Monitor
Mike "ex-genius" Kelley

Hi shadybearbklyn,

Did you share the iPhone's network with your computer? When you use USB.

Hi Allen,
I’ve done that. The phone shows up in ITunes and in Network Connections, but it has a red x next to it and says that the Ethernet cable isn’t connected.

So I'm a bit confused -- you already HAVE the iPhone ethernet adapter?  Is that what you are saying?

If so, you need to make sure it's installed properly -- it's a bit touchy (needs to be powered, you can't just plug it into the iPhone for power but need external power as well) AND needs to show up on your phone (you WILL see the adapter show up in your Settings).  Then turn wi-fi off, enter the IP address shown in the app, and all will be well.

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Alienware Aurora R16, Win 11, i9-149000KF, 3.20GHz CPU, 64GB RAM, RTX 4090 (24GB), Samsung 870 Pro 8TB, Gen3 MVNe M-2 SSD, 4TBx2, 39" Alienware Widescreen Monitor
Mike "ex-genius" Kelley

The problem seems to stem from trying to set up a hotspot when you don’t have cell service. Even though the connection is not using cell or WiFi service, the computer needs the service in order for the Ethernet connection to think that a cable is connected. With no service a red X is next to Ethernet in network connections. Has anybody else had this issue?

I think you're confusing things -- you don't need service for ethernet.  But I don't think you have an ethernet adapter, I think you're trying to use USB (which is NOT ethernet).

I don't know about USB -- never had much luck connecting that way.

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Alienware Aurora R16, Win 11, i9-149000KF, 3.20GHz CPU, 64GB RAM, RTX 4090 (24GB), Samsung 870 Pro 8TB, Gen3 MVNe M-2 SSD, 4TBx2, 39" Alienware Widescreen Monitor
Mike "ex-genius" Kelley

When you connect via USB with a hotspot on your IPhone the computer sees it as a wired Ethernet connection using the Apple Ethernet Driver. When you open network connections it shows up as an Apple device with an Ethernet port, although it is really a hotspot. If your Iphone doesn’t have service there is a red x next to what the computer thinks is an Ethernet port. If you have service it connects with no issues and states that it is connected via Ethernet. Mike, when you connect via Ethernet with the iPhone adapter, do you connect it to your router and also hardwire the computer to your router, or do you connect an Ethernet cable directly to your computer from the IPhone adapter?