Well, I think I may have found the issue. I've been using a PolarPro gimbal guard which apparently interfered with the VPS. The problem manifested itself on DJI Go 4 as well when trying to use its Waypoints flight mode. No matter how high I flew (as high as 200ft), it was telling me I couldn't record a waypoint because I was below 3m altitude! I googled the issue and sure enough there's a ton of comments relating to gimbal guard interference with the VPS. Moreover, there's a DJI advisory that use of third party gimbal guards will void the warranty as it may lead to flight control issues. I will do a test Litchi mission in the morning.