Try to apply the 1.21 b. 2722 again but select option back to manufacture defaults. The reason is could be the fact the MPIO update was installed. Currently you can have only one to function.
When enabling the FC Controller set the function to Target not Initiator in Setup > FC Channel.
Leave the defaults for group. You do not need to add any additional groups.
If directly connecting to the server without switch set for loop if switch set point to point. You want to keep it consistent on both ends.