ssh xterm xsession works but other programs error: X11 connection rejected because of wrong authentication

I setup xauth in part enough to get an xterm, xclock, etc. But any other program like gnome-terminal, a browser, still fails to authenticate. The two computers have the same user name and default ID 1000 and Group 1000. Although I believe the xauth is working partially, I did a quick test with xhost + on the client, same results as below. This is the error that needs to be fixed:

client$ ssh -X server
...
server$ gnome-terminal
X11 connection rejected because of wrong authentication.
Error creating terminal: No screen 0 on display "localhost:10.0"

# But this works and shows the xterm window on the client.
$ xterm

# Pop!_OS ubuntu 21.10

client$ egrep X11 /etc/ssh/ssh_config
/etc/ssh/ssh_config:   ForwardX11 yes
/etc/ssh/ssh_config:#   ForwardX11Trusted yes

client$ xauth list
client/unix:  MIT-MAGIC-COOKIE-1  >
#ffff#abcdef012345#:  MIT-MAGIC-COOKIE-1  >

client$ echo $XAUTHORITY 
/run/user/1000/gdm/Xauthority

# There is no ~/.Xauthority

# Debian GNU/Linux 9 (stretch)

server$ egrep X11 /etc/ssh/sshd_config
/etc/ssh/sshd_config:X11Forwarding yes
/etc/ssh/sshd_config:#X11DisplayOffset 10
/etc/ssh/sshd_config:#X11UseLocalhost yes
/etc/ssh/sshd_config:#	X11Forwarding no

server$ echo $DISPLAY 
localhost:10.0

server$ xauth list
server/unix:10  MIT-MAGIC-COOKIE-1  >

# ~/.Xauthority is 52 bytes and owned by 1000:1000

# On the server XAUTHORITY is not setup automatically. It does not
# matter if I export XAUTHORITY=$HOME/.Xauthority in the ssh session.

HEX SECRET A and B do not match (not sure if they need too)..