I'm unable to get either the port or redstone port to allow connecting AE networks into a compact machine. The port recognizes there is an AE cable on the other side, but won't connect.

Is this a compatibility issue or am I missing something?

Both. Yes it's a compatibility issue and yes you've missed reading this.
That section mentions another mod that helps with AE2 connections. Enjoy!

Right to the point I needed the link you provide gave me the mod I needed to connect my AE2 network, was nicely designing a big and ugly compact machine full of drawers and a drawer controller to hook it to my AE2 network when I realized cables didn't connect, maybe you should update the curseforge page with a link to this since I had to search the github to find it.