Problem with Vault Configuration Sync

I’m using Obsidian and the native Obsidian Sync service on two Macs running macOS 26. I have two vaults on my source computer set up with custom themes and various community plugins. When I added these to Sync I turned on all the options under Vault Configuration Sync so that the setting would be used for the vaults when opened on my secondary computer.

When I opened the vaults from Sync on my secondary computer, I did not get the dialog asking if I trusted the source of the vault and did I want to sync plugin settings, etc. (can’t remember the exact wording). Instead, the vault opened using default Obsidian theme and settings, and no community plugins. When I saw this I went into settings on the secondary computer and turned on all the options for Vault Configuration Sync.

The vault settings from the source computer never synced to the vaults on the secondary computer. Instead, the default settings in the vault on the secondary computer eventually synced back to the vault on the primary computer so I lost my custom theme and settings.

Has anyone else run into this issue, or perhaps someone has advice on how to fix this?

Thank you,
Tom