Whichever mode I set the Draytek to, on the web management page, for Physical connection, I get showtime, with up and down speeds etc. When I go to the main page of the Draytek it says disconnected.
It is a quirk of the Vigor modems, Draytek use the same UI as on their routers so the Dashboard always shows 'Disconnected' for the IP Address in the IPv4 Internet Access section. As long as Online Status > Physical Connection has SHOWTIME in the VDSL2 Information you should be good to go. If you have changed any settings it would be safest to do a factory reset.
Assuming the Archer is supposed to do the layer 3 connection, it doesn't appear to be doing it.
It should be, but from what you have described it has incorrectly autodetected PPPoE which will not work. For Sky the correct WAN connection type is IPoE with DHCP (terminology varies between vendors, TP-Link call this Dynamic IP) and has historically required DHCP option 61 which some vendors call MER.
The AX11000 does not appear to support this which may make it unusable with Sky. You could try enabling IPv6 with the 'Dynamic IP (SLAAC/DHCPv6)' connection type as successful IPv6 PD will permit IPv4 to work without having to provide option 61, as discussed in this
https://helpforum.sky.com/t5/Archive/Using-3rd-Party...
The important bit is to have Prefix Delegation: Enable as shown in the image provided by @jpm
Edited by tdw42 (Fri 06-May-22 12:22:11)