And the problem is back for me almost a year later. Klipsch the Three lost connection to Google Home so I reset. Now trying to connect to Google Home and Wifi and....
"Connection problem during setup"
"Could not communicate with your Klipsch The Three"
I mean it found it and played the sound so its the protocol when trying to setup wifi. Google is really annoying me with this crap!
Edit:
The fix from andyjy901 above does work but I found something new. My Klipsch was part of a speaker network so whenever I reset it it would pick up that network and rename itself. When you press the reset button on the back, hold it an additional 20seconds and you'll hear the other speakers say a speaker was removed. After that my speaker remained Klipsch The Three during setup.