Macbook and iPhone not discoverable on bluetooth or airdrop
Not sure what was wrong with the Bluetooth discoverability, but I found a fix. It also fixes AirDrop since Bluetooth is its underlying technology.

You just need to delete a certain file, in my case I chose to rename it so I still had the original. You can do that using Finder or in the Terminal with the following command:

sudo mv /Library/Preferences/com.apple.Bluetooth.plist /Library/Preferences/com.apple.Bluetooth.plist.orig

Do this then restart Bluetooth and your devices should now be discoverable.