I kept trying to set up iris scan again. After at least a dozen tries and a few resets, one time the red light came on. A second later, it popped an error saying something is wrong, Close windows hello and try again.
So I did. Another 4-5 times and then I was able to get through the initial scan. It worked. I can lock and unlock the phone again. However, when I select improve recognition, it fails more often than it works but I was able to run it twice.
I'll note this in the 0.63 feedback. Thanks for the feedback. Hearing others are experiencing some quirkiness is reassuring that it's not just my setup/hardware.