Following up...
Once I filed the EU261 complaint, no correspondence from Air Dolomiti other than the generic received your form etc.
After waiting 2.5 months, filed the complaint with soep (
https://www.schlichtung-reise-und-ve...e-form-flight/). Within 24hrs, got an email from Air Dolomiti that they will send 600 Euro to my paypal account.
Thank you for all the guidance in this forum. Much appreciated.