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the fact it auto rejects and not auto accepts is good.
if it was auto accepting w/o requiring the confirmation on ur ledger then we would know it is just a hot wallet in phantom not connected to the ledger.
do u use any other monitors. i know it sounds funny but the browser can get stale and so restarting the browser if it has been open for a long time. also make sure u have other applications closed this means ledger live, metamask, solflare, temple, anything other than phantom.
rn u only want phantom open with ur ledger plugged in w solana app open on the ledger no ledger live!