So I'm not quite sure what I did wrong. Wireguard (through the Settings>VPN Manager) was working fine for the last few weeks. I went to change some settings in order to allow custom IPs on Docker. I changed "Local Server uses NAT:" to No and changed "Host access to custom networks" to enabled. I setup a static route in my router to send VPN subnet traffic to the server's IP.

 

Now I can no longer activate (slider at the top) the VPN. I fully deleted all peers and the tunnel itself and tried reconfiguring. What I've noticed is that when I create the tunnel, I can activated it. As soon as I add a peer and hit apply, I get the "Peer update required" notification. After, I cannot activate the VPN. Slider just defaults to inactive.

 

Running UNRAID 6.11.1

I have the same problem after updating 6.10.3 -> 6.11.1
Figured out a workaround

 

Yup, got it all solved after 2 hours. Searched this forum up and down and of course, stumbled on the solution post after posting mine.