Interestingly I had one of these locks at my old house via SmartThings and moved and only just tried to join it to my new Hubitat setup. I noticed people were saying this Schlage lock worked with the C5 hub, just not the C7.
Sure enough, it didn't join (timed out initializing and that's how I found this thread) but it did show up in the Z-Wave radio, just not in Hubitat. I noticed it joined with S0 security and I had a similar issue with the older non-700 series Zooz 4-in-1 sensors. Their firmware couldn't deal with the C7 security handshake and joined incorrectly with S0 security and it burned through batteries and caused all kinds of Z-Wave network issues unless joined properly. The answer to that issue was to add a secondary PC controller and do a Network Wide Join via that secondary controller to add it to the C7.
It joined successfully to my C7:
The process is mentioned here