Which version? If 15 or greater, you should be using pjsip. If you are stuck with an older version, please explain.
Normally, you would register it as a trunk. Even if you get incoming working, you can’t have caller ID, because FreePBX uses the extension number (or Outbound CID) as caller ID for calls from an extension.
If this is a “new” system, I recommend UDP and pjsip, though on an old system that lacks a mature pjsip, it is possible to make a chan_sip trunk work reliably.
The defaults on FreePBX 15 and 16 are: pjsip listens on port 5060 and chan_sip on 5160. Of course, you can change those. Your trace shows the HT sending to port 5060 (configured in the HT); with default FreePBX settings that would reach pjsip (or nothing), so it’s not surprising that there is no response.