Xbee 3 communication with Arduino

I have two xBees set up in transparent mode. One is a Xbee Pro S1 and the other is the Xbee 3. Both are connected to the same computer through the USB ports each in its own breakout board. I can bring them both up in XCTU, the Xbee Pro 1 is the end device and the Xbee 3 the coordinator. In this setup I can send and receive on both to each other.
Now I can change things a bit with the Xbee 3 by connecting it to a Arduino nano IOT and then powering the nano by USB with the same computer. I go to the end device and then type in the console and I will receive whatever I type in the serial monitor of the laptop that is connected to the nano as expected. However when I type in the serial monitor nothing shows up on the other Xbee. I have the serial passthrough code on the nano. I can tie the nanos tx to the nanos rx and will get whatever I type on the serial monitor so I know the nano is sending out of the tx, its like the Xbee 's RX pin is not passing it through, the uart pins are set and this nano has two serial ports. Please help.

Before answering anything, I would like to check if what you detailed in writing was what I understood, see the image below, I await your confirmation.


Thanks so much for taking the time to read and respond to my question. Your diagram is very close to being what desribed with a couple exceptions. The Xbee 3 is connected to a computer it is powered by the nano 3.3 volts and ground. The break out boards are from here Amazon.com: Waveshare UART Communication Board Supports XBee Connectivity : Electronics. I thought maybe there was some circuit components blocking the DIN pin of the Xbee on the breakout board but there doesnt appear to be. I mean when i send a message through the radio from the Xbee Pro 1 the Xbee 3 gets it and sends to out the DOUT pin to the rx on the nano and it shows up on the serial monitor I just cant do the reverse. Its like there is some setting that needs to be configured on that pin. I changed the pull up and pull down resistor enable and disable and it made no difference. This probably something really simple but not spelled out in documentation that most people overlook.

Thanks again

To add to that with some additional information. So I replaced the nano with just a connection to the USB port with a usb to serial converter and a 5 to 3.3 ttl converter that connects to the Xbee serial tx and rx, now Xbee is powered by 3.3 volt battery, using tera term to communicate. I can type into xctu in the end device and I will see the whatever I typed in Tera term. If I type something in tera term nothing shows up on the end devices xctu screen. So its like the RX pin is just not accepting the data.

If you swap the two modules, does the issue follow the module or the converter board?