At this point, we suspect that the root cause behind the scale out failure is due to DNS resolution while trying to add the node to the cluster due to DNS mis-configuration. However DNS resolution from existing node to new node worked fine and vice-versa and wsman test also was successful, this makes the use of hostname as the root cause behind failure.
If you are still stuck with the failed action plan, you could try to restart the cluster or refreshing the management console to reset it's state.
If this doesn't work, unfortunately you would be required to repair the node. This will help to ensure that the node is in clean state when attempting Add-Server
again.