Custom post type pagination 404

Are you sure that you don’t have a page with the same name of the custom post type? If you do, the permalink rewrite rules will get confused and trigger a 404.

A very simple solution is: The page that lists the custom post types is called in plural (eg. products) and the actual post type name is in singular (eg. product). So they don’t conflict and it’s all fine.

Also always make sure to rewrite your .htaccess file when creating a new Custom Post Type.