Cannot set up cluster on 3 machines when using Xpack (7.6.2)

I have successfully set up a 3 node cluster
This is based on 3 VMS (Ubuntu 20.04).
The machines are named node1, node2 & node3 with static ip addresses (192.168.64.21..23)
I have added Kibana on node1 and this also works.
see below for elasticsearch.yml

v7.6.2
https://www.elastic.co/guide/en/elasticsearch/reference/7.6/targz.html
running in a terminal window (not as a daemon)

Problem

However, if I repeat the process after emptying the log and data folders

based on https://www.elastic.co/blog/getting-started-with-elasticsearch-security

node2 & node3 not running elasticsearch yet.
enable the xpack settings in all 3 elasticsearch.yml in the Various section.

#security section added by JC
xpack.security.enabled: true
xpack.security.transport.ssl.enabled: true
xpack.security.transport.ssl.verification_mode: certificate
xpack.security.transport.ssl.keystore.path: elastic-certificates.p12
xpack.security.transport.ssl.truststore.path: elastic-certificates.p12

node1
a) ./bin/elasticsearch

b) ./bin/elasticsearch-setup-passwords auto

failed to determine the health of the cluster running at http://192.168.64.21:9200
Unexpected response code [503] from calling GET http://192.168.64.21:9200/_cluster/health?pretty
Cause: master_not_discovered_exception

It is recommended that you resolve the issues with your cluster before running elasticsearch-setup-passwords.
It is very likely that the password changes will fail when run against an unhealthy cluster.

Do you want to continue with the password setup process [y/N]


Notes
3 vms Ubuntu 20.04
ufw firewall enabled for ports 9200, 9300, 5601, 443, 22 on all 3 nodes
node1 192.168.64.21
node2 192.168.64.22
node3 192.168.64.23

downloaded elasticsearch to
home/chapmj/elasticsearch
home/chapmj/data
home/chapmj/logs

node1 elasticsearch.yml

# ======================== Elasticsearch Configuration =========================
#
# NOTE: Elasticsearch comes with reasonable defaults for most settings.
#       Before you set out to tweak and tune the configuration, make sure you
#       understand what are you trying to accomplish and the consequences.
#
# The primary way of configuring a node is via this file. This template lists
# the most important settings you may want to configure for a production cluster.
#
# Please consult the documentation for further information on configuration options:
# https://www.elastic.co/guide/en/elasticsearch/reference/index.html
#
# ---------------------------------- Cluster -----------------------------------
#
# Use a descriptive name for your cluster:
#
cluster.name: cluster1
#
# ------------------------------------ Node ------------------------------------
#
# Use a descriptive name for the node:
#
node.name: node1
#
# Add custom attributes to the node:
#
#node.attr.rack: r1
#
# ----------------------------------- Paths ------------------------------------
#
# Path to directory where to store the data (separate multiple locations by comma):
#
path.data: /home/chapmj/data
#
# Path to log files:
#
path.logs: /home/chapmj/log
#
# ----------------------------------- Memory -----------------------------------
#
# Lock the memory on startup:
#
#bootstrap.memory_lock: true
#
# Make sure that the heap size is set to about half the memory available
# on the system and that the owner of the process is allowed to use this
# limit.
#
# Elasticsearch performs poorly when the system is swapping the memory.
#
# ---------------------------------- Network -----------------------------------
#
# Set the bind address to a specific IP (IPv4 or IPv6):
#
network.host: 192.168.64.21
#
# Set a custom port for HTTP:
#
http.port: 9200
#
# For more information, consult the network module documentation.
#
# --------------------------------- Discovery ----------------------------------
#
# Pass an initial list of hosts to perform discovery when this node is started:
# The default list of hosts is ["127.0.0.1", "[::1]"]
#
discovery.seed_hosts: ["node2", "node3"]
#
# Bootstrap the cluster using an initial set of master-eligible nodes:
#
cluster.initial_master_nodes: ["node1", "node2", "node3"]
#
# For more information, consult the discovery and cluster formation module documentation.
#
# ---------------------------------- Gateway -----------------------------------
#
# Block initial recovery after a full cluster restart until N nodes are started:
#
#gateway.recover_after_nodes: 3
#
# For more information, consult the gateway module documentation.
#
# ---------------------------------- Various -----------------------------------
#
# Require explicit names when deleting indices:
#
#action.destructive_requires_name: true
#
#security section added by JC
#xpack.security.enabled: true
#xpack.security.transport.ssl.enabled: true
#xpack.security.transport.ssl.verification_mode: certificate
#xpack.security.transport.ssl.keystore.path: elastic-certificates.p12
#xpack.security.transport.ssl.truststore.path: elastic-certificates.p12

------------------

Correction, good news, it is now working using the following steps

1 started node1
2 started node2
3 from node1
./bin/elasticsearch-setup-passwords auto
-no longer got the warning message about the health of the cluster
4. started node3

I though I'd done this before and failed
(but perhaps with added node.master: false -on node2 & node3)

Also need to follow the steps where [https://www.elastic.co/guide/en/elasticsearch/reference/current/vm-max-map-count.html](http://Virtual Memory)

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