Trouble creating a isolated guest network, isolating not working

Correct me if I am wrong, but 192.168.1.1 is the router and client isolation clearly mentions that prevents client-to-client communication.

Then you need a combination of firewall rules as described in guest wifi along with Policy Based Routing where you have 3 options:

  1. mwan3 package
  2. pbr package
  3. a set of rules/routes for the non default traffic.