For the MTU for some reason, specifically for the wt0 interface, the MTU was set to 1500 so I had to reduce it until I saw it work well.
For the P2P to finally work properly, I just turned off the external firewall for my exit node VM that's on my cloud provider, rookie mistake. I am using UFW and it has the usual ports open for netbird. I just had to reconnect it and it worked.