@Retik,

It looks like there may actually be larger changes happening to the Apple Home ecosystem, as many updates have been given by apple over the past month.

First, Make sure that your phone has been updated to the most recent OS version. Our team even reported that an update was given to their phone's OS today.

The 1.0.9 firmware update indicates in the patch notes that changes were made to the setup process when using Apple Home, so I will try to find out some more information about what may be throwing your error, or what the difference is from previous versions.

If your OS is already up-to-date, I would first make sure that you restart your phone to clear any cached settings that could be interfering.

I would also make sure that your Apple Home app does not have any "Ghost Devices" listed, such as having the EP25s listed, but as unavailable. 

While unlikely it will help, I would try connecting the device to another wireless network to see if a change in networks will allow the setup to continue.

It is worth mentioning that Apple Home prefers to use IPv6 - so you may check your network settings to ensure that IPv6 compatibility is enabled.