This is certainly an odd occurrence to hear of neighbors! With what you’ve described, your devices are certainly setup and sound to be reporting correctly to the app. An red indicator in the app settings might have to do with power source, settings, or connection. Please go through each setting option to ensure you’ve optimized all the options available, as well as check for any new features the app might be making you aware of.
If this indicator is persisting, and only references “completing the setup”, try removing the app and reinstalling it on your mobile device. Feel free to respond with a screen shot or screen recording example of this concern so we can look into this further! 