Azure Nested IoT Edge: Lower level device can not pull modules except for edgeAgent

I am trying to deploy a Azure nested IoT Edge structure on two raspberry pi:s using the following documentation: https://docs.microsoft.com/en-gb/azure/iot-edge/tutorial-nested-iot-edge?view=iotedge-2020-11&tabs=azure-portal.

The top level device is working correctly, modules is downloaded and connection is established to the IoT Hub.

The only issue I currently see on the top level device is from the logs of IoTEdgeApiProxy:

pi@top-layer-device:~ $ iotedge logs IoTEdgeAPIProxy
[2021-01-20T13:33:58Z WARN  mqtt3::client::connect] could not connect to server: Connection refused (os error 111)
[2021-01-20T13:33:58Z WARN  mqtt3::client::connect] could not connect to server: Connection refused (os error 111)
[2021-01-20T13:34:06Z WARN  mqtt3::client::connect] could not connect to server: Connection refused (os error 111)
[2021-01-20T13:34:09Z WARN  mqtt3::client::connect] could not connect to server: Connection refused (os error 111)

The lower level device has pulled down the edgeAgent from the parent device, but will not pull the other modules specified in the deployment:

pi@middle-layer-device:~ $ iotedge list
NAME             STATUS           DESCRIPTION      CONFIG
edgeAgent        running          Up a week        top-layer-device:8000/azureiotedge-agent:1.2.0-rc2

The config.yaml is configured with the parent-hostname as the "top-layer-device". In etc/hosts I have configured top-layer-device to the ip of the top layer device on the network.

Output of the edgeAgent of the device which keeps repeating:

pi@middle-layer-device:~ $ iotedge logs edgeAgent
<4> 2021-01-19 13:43:23.675 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<4> 2021-01-19 13:43:33.683 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<4> 2021-01-19 13:43:43.691 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<6> 2021-01-19 13:43:46.299 +00:00 [INF] - Edge agent attempting to connect to IoT Hub via Amqp_Tcp_Only...
<4> 2021-01-19 13:43:53.697 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<4> 2021-01-19 13:44:03.697 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<4> 2021-01-19 13:44:13.689 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<6> 2021-01-19 13:44:22.850 +00:00 [INF] - Edge agent attempting to connect to IoT Hub via Amqp_WebSocket_Only...
<4> 2021-01-19 13:44:23.706 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<4> 2021-01-19 13:44:33.719 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<4> 2021-01-19 13:44:43.726 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<4> 2021-01-19 13:44:53.724 +00:00 [WRN] - Empty edge agent config was received. Attempting to read config from backup (/tmp/edgeAgent/backup.json) instead
<4> 2021-01-19 13:44:59.337 +00:00 [WRN] - Error creating a device-to-cloud connection
System.AggregateException: One or more errors occurred. (Transient network error occurred, please retry.) (Transient network error occurred, please retry.)
 ---> Microsoft.Azure.Devices.Client.Exceptions.IotHubCommunicationException: Transient network error occurred, please retry.
 ---> System.Net.Sockets.SocketException (0xFFFDFFFF): Name or service not known
   at Microsoft.Azure.Devices.Client.Transport.AmqpIoT.AmqpIoTTransport.InitializeAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.Amqp.AmqpIoTConnector.OpenConnectionAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.Amqp.AmqpConnectionHolder.EnsureConnectionAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.Amqp.AmqpConnectionHolder.OpenSessionAsync(DeviceIdentity deviceIdentity, TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.AmqpIoT.AmqpUnit.EnsureSessionAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.AmqpIoT.AmqpUnit.OpenAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.Amqp.AmqpTransportHandler.OpenAsync(CancellationToken cancellationToken)
   at Microsoft.Azure.Devices.Client.Transport.ProtocolRoutingDelegatingHandler.OpenAsync(CancellationToken cancellationToken)
   at Microsoft.Azure.Devices.Client.Transport.ErrorDelegatingHandler.<>c__DisplayClass23_0.<<ExecuteWithErrorHandlingAsync>b__0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at Microsoft.Azure.Devices.Client.Transport.ErrorDelegatingHandler.ExecuteWithErrorHandlingAsync[T](Func`1 asyncOperation)
   --- End of inner exception stack trace ---
   at Microsoft.Azure.Devices.Client.Transport.ErrorDelegatingHandler.ExecuteWithErrorHandlingAsync[T](Func`1 asyncOperation)
   at Microsoft.Azure.Devices.Client.Transport.RetryDelegatingHandler.<>c__DisplayClass33_0.<<OpenInternalAsync>b__0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at Microsoft.Azure.Devices.Client.Transport.RetryDelegatingHandler.EnsureOpenedAsync(CancellationToken cancellationToken)
   at Microsoft.Azure.Devices.Client.InternalClient.OpenAsync()
   at Microsoft.Azure.Devices.Edge.Agent.IoTHub.ModuleClientProvider.CreateAndOpenSdkModuleClient(UpstreamProtocol upstreamProtocol, ConnectionStatusChangesHandler statusChangedHandler) in /home/vsts/work/1/s/edge-agent/src/Microsoft.Azure.Devices.Edge.Agent.IoTHub/ModuleClientProvider.cs:line 220
   at Microsoft.Azure.Devices.Edge.Agent.IoTHub.ModuleClientProvider.<>c__DisplayClass19_1.<<CreateSdkModuleClient>b__2>d.MoveNext() in /home/vsts/work/1/s/edge-agent/src/Microsoft.Azure.Devices.Edge.Agent.IoTHub/ModuleClientProvider.cs:line 184
--- End of stack trace from previous location where exception was thrown ---
   at Microsoft.Azure.Devices.Edge.Util.Fallback.ExecuteAsync[T](Func`1[] options)
   --- End of inner exception stack trace ---
 ---> (Inner Exception #1) Microsoft.Azure.Devices.Client.Exceptions.IotHubCommunicationException: Transient network error occurred, please retry.
 ---> System.Net.WebSockets.WebSocketException (0x80004005): Unable to connect to the remote server
 ---> System.Net.Http.HttpRequestException: Name or service not known
 ---> System.Net.Sockets.SocketException (0xFFFDFFFF): Name or service not known
   at System.Net.Http.ConnectHelper.ConnectAsync(String host, Int32 port, CancellationToken cancellationToken)
   --- End of inner exception stack trace ---
   at System.Net.Http.ConnectHelper.ConnectAsync(String host, Int32 port, CancellationToken cancellationToken)
   at System.Net.Http.HttpConnectionPool.ConnectAsync(HttpRequestMessage request, Boolean allowHttp2, CancellationToken cancellationToken)
   at System.Net.Http.HttpConnectionPool.CreateHttp11ConnectionAsync(HttpRequestMessage request, CancellationToken cancellationToken)
   at System.Net.Http.HttpConnectionPool.GetHttpConnectionAsync(HttpRequestMessage request, CancellationToken cancellationToken)
   at System.Net.Http.HttpConnectionPool.SendWithRetryAsync(HttpRequestMessage request, Boolean doRequestAuth, CancellationToken cancellationToken)
   at System.Net.Http.RedirectHandler.SendAsync(HttpRequestMessage request, CancellationToken cancellationToken)
   at System.Net.WebSockets.WebSocketHandle.ConnectAsyncCore(Uri uri, CancellationToken cancellationToken, ClientWebSocketOptions options)
   at System.Net.WebSockets.WebSocketHandle.ConnectAsyncCore(Uri uri, CancellationToken cancellationToken, ClientWebSocketOptions options)
   at System.Net.WebSockets.ClientWebSocket.ConnectAsyncCore(Uri uri, CancellationToken cancellationToken)
   at Microsoft.Azure.Devices.Client.Transport.AmqpIoT.AmqpIoTTransport.CreateClientWebSocketAsync(Uri websocketUri, TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.AmqpIoT.AmqpIoTTransport.CreateClientWebSocketTransportAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.AmqpIoT.AmqpIoTTransport.InitializeAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.Amqp.AmqpIoTConnector.OpenConnectionAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.Amqp.AmqpConnectionHolder.EnsureConnectionAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.Amqp.AmqpConnectionHolder.OpenSessionAsync(DeviceIdentity deviceIdentity, TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.AmqpIoT.AmqpUnit.EnsureSessionAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.AmqpIoT.AmqpUnit.OpenAsync(TimeSpan timeout)
   at Microsoft.Azure.Devices.Client.Transport.Amqp.AmqpTransportHandler.OpenAsync(CancellationToken cancellationToken)
   at Microsoft.Azure.Devices.Client.Transport.ProtocolRoutingDelegatingHandler.OpenAsync(CancellationToken cancellationToken)
   at Microsoft.Azure.Devices.Client.Transport.ErrorDelegatingHandler.<>c__DisplayClass23_0.<<ExecuteWithErrorHandlingAsync>b__0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at Microsoft.Azure.Devices.Client.Transport.ErrorDelegatingHandler.ExecuteWithErrorHandlingAsync[T](Func`1 asyncOperation)
   --- End of inner exception stack trace ---
   at Microsoft.Azure.Devices.Client.Transport.ErrorDelegatingHandler.ExecuteWithErrorHandlingAsync[T](Func`1 asyncOperation)
   at Microsoft.Azure.Devices.Client.Transport.RetryDelegatingHandler.<>c__DisplayClass33_0.<<OpenInternalAsync>b__0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at Microsoft.Azure.Devices.Client.Transport.RetryDelegatingHandler.EnsureOpenedAsync(CancellationToken cancellationToken)
   at Microsoft.Azure.Devices.Client.InternalClient.OpenAsync()
   at Microsoft.Azure.Devices.Edge.Agent.IoTHub.ModuleClientProvider.CreateAndOpenSdkModuleClient(UpstreamProtocol upstreamProtocol, ConnectionStatusChangesHandler statusChangedHandler) in /home/vsts/work/1/s/edge-agent/src/Microsoft.Azure.Devices.Edge.Agent.IoTHub/ModuleClientProvider.cs:line 220
   at Microsoft.Azure.Devices.Edge.Agent.IoTHub.ModuleClientProvider.<>c__DisplayClass19_1.<<CreateSdkModuleClient>b__3>d.MoveNext() in /home/vsts/work/1/s/edge-agent/src/Microsoft.Azure.Devices.Edge.Agent.IoTHub/ModuleClientProvider.cs:line 190
--- End of stack trace from previous location where exception was thrown ---
   at Microsoft.Azure.Devices.Edge.Util.Fallback.ExecuteAsync[T](Func`1[] options)<---