The Chime setting being set to Mechanical was the trick for me. I had to BOTH 1) use the alternate wiring method (two wires, one bell) AND 2) go in the app to Settings for the doorbell, then going to Chime and switching Doorbell Chime Type to Mechanical.
I resolved with no help from Wyze despite spending hours with their phone and chat support. The solution was on a reddit thread. Essentially, at least for this first batch of chime controllers, it is miswired internally so the instructions are incorrect. Just swap the colors as follows:
Wyze app instructions:
Chime Controller WHITE prong → connect to FRONT terminal
Chime Controller RED prong → connect to TRANS terminal
CORRECTED instructions:
Chime Controller WHITE prong → connect to TRANS terminal
Chime Controller RED prong → connect to FRONT terminal
Make sure the Chime setting is set to Mechanical in the app.
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For those that the chime is not working after installing the chime controller following the in-app instructions, you can try this alternate wiring method and see if it then works.
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Holy crap. That did it. Thank you! I know I tried this at one other point in the troubleshooting, so I have no clue why it works now. But, ding dong.
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I guess everyone who bought a new transformer jumped the shark a bit.
The rewire of the chime controller (swapping red/white wires) worked for my Nutone mechanical chime and I still have the original 16V/10VAC transformer that came with my house. The ding works perfectly now. I knew an easy fix would show up eventually.
I guess, but not connecting one wire or connection not spelled out in directions is the same as not connecting the WYZE Chime Controller, which WYZE states could void your warranty.
My Wyze Controller is now fully connected and functional though. They (Wyze or whoever manufactured) the controller internally crossed the wires. So the fix is to simply swap the red and white wires from the Controller onto the chime itself.
Red Wire → Front
White Wire → Trans
This is opposite from the Wyze directions. Again, all wires from the Controller are now connected. Just swap the red/white.
This is the fix!!! I just did it and my chime now does both ding and dong. 
And I still have the original 16V/10VAC transformer.
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Has WYZE officially endorsed this “fix”. I have not seen any notifications.
Glad it is working for you all.
I can also confirm that once re-wired (swapping the white and red from the Chime Controller) mine worked just as it did without the Chime Controller - i.e. my Nutone mechanical chime ding dong. Pretty much as soon as the dong ends at the Door Bell, the ding started at the mechanical chime inside. I have a 16V 10VA transformer
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For what it’s worth, I had to swap my 16/10 for a 16/30 AND swap the red/white wires and now mine works. I tried all the wiring suggestions with the 16/10 to no avail.
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In the “alternate” wiring documentation, they do mention that you may still need to upgrade your transformer if you still have issues. My transformer, chime box, and doorbell are all within 10 feet of each other.
Thank you for the clarification – the wiring in my setup is at least 20’+ as the transformer is next to the service panel in the basement on the side of the house. This might help some folks determine if the transformer upgrade is needed or not.
Can someone point me to where WYZE has documented the alternative wiring solution? I do see the notification on the Video Doorbell v2 tec specs about a 16V 10VA transformer may not be sufficient (however they do not state if a customer should purchase a higher voltage than 16V or a higher ampere of greater than 10VA). Also I do not see any reference to either cross wiring or leaving one wire disconnected on the Wyze Chime Controller.
Some WyzeGuy posted it earlier. (see what I did there )
Also, Wyze has posted multiple articles under the Video Doorbell 2 troubleshooting section of their website.
https://support.wyze.com/hc/en-us/sections/19795400529819-Wyze-Video-Doorbell-v2-Troubleshooting
Thanks. I still think they owe us an explanation of what the heck this chime controller was supposed to or is doing. I already replaced my transformer with 16V 30VA, Again they do not specify which rating to increase the Volts or Amps.
3 Output Options: 8 vac/10 VA, 16 vac/10 VA or 24 vac/20
You can order a tri-voltage transformer for about $2 more than a 16/10.
The alternate instructions say 16/10 isn’t enough for both the camera and the chime but do NOT say how much is needed for both.
Would be nice to TELL us what output is needed for both.
I was going to disagree with some article I saw that said they were NOT going to recommend Wyze anymore because Wyze does NOT address known problems in a PROACTIVE way.
Since I still haven’t figured out how to fix the Daylight Savings Time issues, I’m NOT very happy with Wyze. Too big an investment to switch. I did a search and a lot of IoT vendors have issues with Daylight Savings Time and I am certain that NO home security system is problem-free.
Better the devil you know. Olde Wisdom from Thee Frugal Curmudgeon
My old 10VAC ?VA transformer ran cool,
and the Wyze v2 doorbell worked fine and ran cool, but the electronic chime didn’t work. The Wyze chime controller got hot very quickly. I then discovered that my doorbell wires were wired backwards, compared with the Wyze app wiring diagrams. I reversed the doorbell wires, and the chime controller stopped overheating. However, the chime only rang for less than a second.
So I installed a new 24VAC 40VA transformer, and discovered that it runs quite warm, measuring 101F, (73F ambient room temperature). The Wyze v2 doorbell is also warm at 88F (77F ambient). The Wyze chime controller is at room temperature, and it’s wired to the electronic chime per the Wyze diagram.
It appears that 24VAC 40VA is more voltage than the Wyze v2 doorbell camera needs, even though it’s specified as acceptable by Wyze. The transformer and the camera are successfully dissipating the power for now, under these cool weather conditions, but efficiency is compromised. I wonder about the longevity, especially when summer temperatures rise.
Where is it specified “acceptable”?
I’ll have to try reversing the wires at the doorbell.
I’m thinking 16VAC 30VA is what is needed. That is what other brands of video doorbells use.
Ah, you found a use for one of those thermometer guns. Hmm, Black Friday is coming up and I like man toys.
Those wiring diagrams are nearly worthless. I have white and red from the transformer and the Wyze controller has white, black, and red. And you do NOT wire color to color.