Neither the Active Pen nor the Active Stylus are compatible with the latest generation Spectre X360 (Kaby Lake processor) according to HP. E.g. the HP Spectre X360 13-w090nz.
I also have a Spectre x360 (w084nz) can anyone tell me why the pen is not connecting to it? Do I need special software for it? Or is it not compatible with my system?
Yes, the pen should work. However, it is also possible that the AAAA battery of the pen is already empty and needs to be replaced. You don't have to "pair" the device and the pen, the pen will also work on any other X 360.
I put a battery in this pen and went to the screen with the pen and it worked immediately. In this case, this pen connects to the screen itself every time. I didn't have to change anything in the settings in particular.