I am using NearBy 2.0 API version 'com.google.android.gms:play-services-nearby:12.0.1' with android things 'com.google.android.things:androidthings:1.0' to create a smart home app, but previously upto 8th may it was working fine with the build downloaded from android things console, but from yesterday it is throwing com.google.android.gms.common.api.ApiException:8007 STATUS_BLUETOOTH_ERROR. when I am starting advertisement or discovery whichever maybe. But if I use the previous build (image with apk) of 8th may it is working fine. I tried with that old apk also like new os image with old apk, found not working. In logcat I found it is unable to start listening for incoming connections.
I searched SO and google a lot but no solution worked. Even followed this Error codes in Nearby Connections 2.0 but no luck. I am using Raspberry PI 3 model B. Help!!
Finally I got it working , actually when I was configuring the hardware during the build preparation in android things console there I used Starter Kit configuration which by default configured UART as UART0 (disables Bluetooth) , hence the exception it was throwing com.google.android.gms.common.api.ApiException:8007 STATUS_BLUETOOTH_ERROR. during init of nearby where I was starting advertisement.
So the fix is change the configuration of UART to MINIUART in android things console and create the build.