If it was me that stated you should restart daemon(s) after editing conf(s), then sorry, sometimes state that by mistake, and meant with daemon(s) closed and start afterwards, as deluge reads conf on start and ignores afterwards and rewrites it's copy from memory into conf again at closing, hence overwriting any changes made in-between.
The last error is not important whatsoever and can be ignored, but if wanting it fixed, then can manually apply/backport following commit from deluge's develop branch: https://git.deluge-torrent.org/deluge/c ... 94017e7c85
Again should be reported imho to package maintainer to backport said fix, or alternatively they should make a decision to go with the dev release instead, like my used distro, instead of backporting this and that needed fix., e.g. a fix transfering your torrents from deluge1 instance to deluge2, plus py3.8 compatibility, plus this here, plus another unicode error etc etc is imho warranted - I wish Cas would just release 2.0.4 already, to stop all these issues, especially now when py3.8 is the norm and some systems get's bogged down with megs of error logging overloading ram/disk and these questions regarding various aspects are posted again and again, here and on all other related projects like all various docker images etc etc.
Anyway, your first issue, and sorry for the reversed chronology or whatever called, is that you run deluge-console as your own user and hence looks into ~/.config/deluge configs and your daemon is using debain-deluge's configs in it's other location. In my tests previously, it was not enough to use localclient line from daemon auth into user's hostlist.conf, and needed new user/pass to work, so, do this here:
Always stop daemons before making manual config changes i.e. 'sudo systemctl stop deluged deluge-web'.
You need another user besides default localclient, so if haven't already defined another one, then add new one with e.g. 'echo test:test:10 | sudo tee -a /var/lib/deluged/.config/deluge/auth'(test:test is user/pass wanted, and 10 is admin rights).
In your '~/.config/deluge/hostlist.conf', and if not existing you need run deluge-console once and just shift-q quit it afterwards and it will be there, but anyway you either edit the default localclient host defined, so you change the user and pass in the two lower lines of it's section to e.g. test and test, or whatever choosen in previous step, or you add another host to it, by adding new section over the bottom } and ], and needs a ', ' added after the localclient's sections's end-bracket, I can post you an example if need be. I would just change the default localclient one myself, to have test and test instead of localclient and xxxxxxxxxxxxxx. If adding new host, then the first line of id can be anything you want and not need be x chars and so e.g. can be called test also etc fine.
sudo systemctl start deluged deluge-web.
Works now I just tested again, since as said, I personally just use my own user, so no issues with this or permissions etc etc and only one location for everything, but potentially less secure should be understood.
Edit: ashmandias posted while I typed btw