I encountered an issue where Touch can't connect locally, via Bonjour, to my server; but only occasionally.
At what appeares to be random intervals, Touch will time out while trying to connect to my server locally. On the settings screen, I can select my dynamic dns address and connect as normal. Also, if I delete the local connection from the list, in about 10 seconds it reappears and can connect as expected.
I'm assuming it is an iOS 10 issue because I don't remember it happening before updating. Maybe some new Bonjour protocol?