I installed the Beta version 2.72 and still had BT disconnect/connect issues. I reverted back to v2.40 and now the BT issues seem to have disappeared. Worth a try for others with BT connection issues.
Initially on 2.40 I had disconnects with my phone next to my watch. After installing 2.72 Beta and then reverting back to 2.40 I stay connected from my office on second floor in my house to the kitchen - a direct distance of about 15 meters (abt 50 ft). Even when it disconnects when I exceed that approximate range, it will reconnect automatically. Four hours in and so far so good. Keeping my fingers crossed.
Thanks for the hint! Just did it now (bye bye my settings...). Will report the result after a day or two. If it really improves - maybe it was the case of resetting the watch to defaults (I mean, no need to do "beta-revert", but just "reset-re-pair")?