Is it normal for the AIO-5 to require a bluetooth as well as a wifi connection between iPhone and the unit so that CarPlay will work?

Today I am getting ready for my 4 day motorbike ride and I was testing my new touchscreen gloves. However, the AIO and the iPhone wouldn't connect except for a Bluetooth connection.

See the screen shots that I have made. The AIO is asking to pair via Bluetooth. On the screen it says that the iPhone is connected (via Bluetooth) and the rotating circle just rotates. It doesn't say to connect using WIFI.

In this mode I can stream music via the normal bluetooth method and that's all it will do.

Then I decided to see if wifi worked. I told the iPhone to connect to the AIO and it did. Then CarPlay worked.

I haven't had to do this in the past. Why now is it doing it?

Thanks