Found the issue.
The problem was that I was using two instances of transmission on the same host. Both used the same ports and this caused conflict.
I made another test using two separate machines on the same network. On one I used linuxserver/transmission to seed and on the other I used a torrent client to open the same torrent file. I had to let it run for almost 30 minutes but in the end the file downloaded.
Now I just need to see if I can make the download start faster but other that that transmission works just fine. Sorry for the trouble and thank you for the responses!