Hi,
Edge/Core has been replaced with Compression & Deduplication Optimization levels to be configurable for speed or best reduction rates.
The UDPEncap is not ideal since it introduces additional overhead, but should still work. pfSense is normally fine with the proto 108 and TCP Option 76, but not sure whether the Palo Alto needs additional config. The UDPEncap will only 'kick-in' once the peers detect each other.
Hence getting them to peer would be the first step. Is it possible that the lan0/wan0 is reversed on either end? When UDPEncap is enabled the 'peer detected on lan0' messages are not triggered. If the cabling is correct and no bypass rules are in place, the only other reason they would not peer is if there is no TCP traffic flowing across the vpn to trigger the peering or if either firewall is dropping UDP dst port 4050 traffic. The debug log can be viewed to see if they perhaps did peer but timed out recently. Also the VERBOSE=true will enable a few more debug logs related to peering.
And if one side is another Expand 4930 remember to set jumper JP3