There’s probably more to this that someone who actually knows what they’re doing can help with, but the first thing I noticed is that you used active dry yeast. Instant and bread machine are the same thing, but active is different and may need a different quantity?

Sorry about your disappointment, but I can empathize. I've got a Zoji in the basement that I had poor results with. If I used it more than once, it must have been twice. It might require a bit more persistence than that!

Perhaps it was overbaked?

Bread machine yeast is instant yeast. This article states active dry yeast may be used, but you need to dissolve it in water first.

https://bakinghow.com/bread-machine-yeast/

Cross-posted bur was gonna warn you about Rho’s disappointing suggestion. Meaning it’s disappointing how many people recommend baking separately, would be nice if the machines did everything well.

*Just use the bread machine for mixing....if youi must! then shape and bakwe seperately. Yeast is yeast....the difference is how it dissolves.Bread amchine yeast is fine and mixes quickly with the other ingredients. Try a different recipe....or just ditch the machine and make bread in a boiwl.....iuts' really VERY easy!

I make bread in a bowl about once a week, and my standard loaf is 100% whole wheat. It uses more yeast than white bread, but I do not taste the yeast in the bread at all - I think the whole wheat flavor masks it.

I also make rye bread, and it also uses more yeast, but it also has caraway in it, which would mask the yeast flavor.

Here's my recipe for whole wheat bread. Perhaps you could use it in your bread machine. I use the full amount of flour when making the bread in L.A., but I use less when I am in the desert. Lately I've been adding 1/4 tsp ascorbic acid to the dough.

Instaant yeast is cut up to be very fine and dissolve very fast. Active Dry Yeast is full sized granules and is meant to develop more slowly. Yeasty flavor in bread is from yeast that hasn't finished doing its thing, usually when too much yeast is used, or when it's not given enough time to do its thing. As Carol said, dissolving the yeast in the liquid from the recipe will jump start it and make it work with the machine's cycle timing. The liquid you dissolve in should be slightly warm, but nowhere near hot. Stir in the yeast granules with a pinch of the flour from the recipe, and put the dish someplace slightly warm. Have the rest of the ingredients in the machine and ready, and add the yeast mixture when it's starting to get bubbly or foamy.

Bread flour is important because it has a lot of protein for making the gluten that gives the bread its stucture. Given the rush of a bread machine, you need that to get it going in time.

The hard crust may be part of the recipe. Crusty white bread has been very popular, including loaves that have biteable crust that's hard to cut with a bread knife. Some of these loaves are really meant to be eaten next day, when the crust will have softened a little, but that would beat the point of a bread machine being so fast. Hard crusts also come from baking too hot. I don't know enough to say if this is from the machine being new, or if something was off with the dough, or the yeast issue, or what. I had a friend who made great white bread in her machine, so I'm sure it can be done. If there's a consumer helpline or website, try getting in touch with your machine's makers. Otherwise, you might do a search to see if there's a facebook or reddit group, or similar, devoted to your machine and its quirks.

Take heart! Few people make a great loaf of bread their first time, no matter the method. Good luck!

I suggest perusing some baking forums like the Fresh Loaf for bread machine recipes. Baking takes some practice and we all have different expectations for results.

https://www.thefreshloaf.com/forums/general-discussion-and-recipe-exchange/bread-machine-recipes

I don't have experience with a bread machine, but if the crust is too hard, you can brush it with some butter when it's finished baking and still hot. That will keep it somewhat softer.