This is a known bug that will be resolved in the next software update.
After resetting the credentials, connecting the C214 and switching it off, the connection is lost and the blue LED breathes as if trying to connect.
Simply reconnect the AVAA C214 to keep it connected, even after switching it off and on again.
In summary: after resetting the credentials, you may need to connect the AVAA C214 twice for it to stay connected even after powering down.