I do not see a problem with the part of the config that you posted. And the show standby indicates that HSRP is working (at least switch 2 knows that it is active and switch 1 knows that it is standby). I do not know if the full output of show standby would show anything else useful.
If standby is working and you are getting these error messages then it does sound like a bug. If you want to investigate further, it might be helpful to run debug for HSRP and see if it indiates anything. And of course opening a case with TAC is the ultimate way to find if it is a bug.
We are pleased to announce availability of Beta software for 16.6.3.
16.6.3 will be the second rebuild on the 16.6 release train targeted
towards Catalyst 9500/9400/9300/3850/3650 switching platforms. We are
looking for early feedback from customers befor...
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