Okay so I fixed this by turning off my firewall. Now I get "Failed. Hit the home button and try again." as soon as I see PegaSwitch. The debug on the console says:
"Starting
Building Stuff
Building Stuff
Failed to find"
"Could not perform DNS name resolution."
Can someone help me out with this. I changed my Switch's DNS settings to the one in the terminal. I can connect to the internet normally without an issue.
EDIT: I've tested this with my Android wifi hotspot. So I don't know what's up anymore.