Ok, so I enabled all the routes, so the exclamation points are gone.
I also added a raspberry PI exit node, just to verify exit node functionality with a different device.
I brought up the rpi exit node via the following command:
sudo tailscale up --advertise-exit-node --advertise-routes=10.0.0.0/24 --accept-routes
My other clients can connect and route traffic through the exit node perfectly.
Note: I turn off the Wireguard Client and the Global "Block all Non-VPN Traffic" option, just to avoid any conflicts for each test.
I still have the same problem.