Hi,
I had a similar issue and noted that the path was never used and the target was never connected. Like your observation the target IP address appeared in the dynamic discovery, the target iqn was also discovered.
I found that my iSCSI target had a volume with a couple of mappings using the same LUN, both on default LUN 0. I removed the conflicting volume LUN mapping to resolve my issue.
I'd suggest looking at the way your iSCSI target is mapping volumes to initiators.
Hope this helps.
Groundit.