The mouse connects initially but here are all the issues I have experienced while connected by Bluetooth. Bluetooth Smart enabled computers as specified by Logitech are MacBooks. The number 1 problem is the use of the Bluetooth and not using the dongle. I have a Magic Mouse 2 but it is so thin and small that it cramps my hand hence I went with what seems to be the leader the MX Master. Heres the issues I have had with the MX Master since using it from day one in December when I got my MacBook.
I understand your in the same boat without a USB 3.0 port and stuck with only USB C.
MX Master problems with Late 2016 MacBook Pro.