Gather and prep ingredients before you begin. Make sure everything is measured and ready to go for a smooth process.
In a bowl, whisk together coconut flour, baking powder, garlic powder, and xanthan gum until fully blended. This forms the dry base for your dough.
Place mozzarella in a microwave-safe bowl and microwave it in short bursts until completely melted and easy to stir. Add the flour mixture and egg, then stir with a spatula or fork, working it all together until a solid dough forms.
When the cheese dough is cool enough to handle, dust the work surface with coconut flour and knead with your hands until it comes together completely and smooth.
Divide the dough into equal portions, roll each into a log, then cut into bite-size pieces. Brush with melted butter and place aside. Arrange the pretzel bites on the rack of the air fryer, sprinkle with coarse salt, and gently press it into the dough.
Air fry at 350F for 5–7 minutes until puffed, golden, and brown. Mix mayonnaise and mustard for a dipping sauce, then serve hot and enjoy the irresistible texture and flavor.