I've had the Edge 520 since release day and I've not had a single issue unit recently. The only difference from trouble free to the BT phone disconnects are that I updated the Edge 520 to version 3.10 and I added Varia Radar.
I have the following paired:
1. Shimano D-Fly (Di2) = No issues or disconnects
2. Garmin magnetless speed (no cadence) sensor = No issues or disconnects
3. Garmin Edge remote = No issues or disconnects
5. Garmin Varia Radar (tail light only) = No issues or disconnects
6. Sony Xperia Z5 Compact = Disconnects several times a ride. The phone does immediately reconnect however.
I've factory reset the Edge 520, I've factory reset the Z5 Compact and the issue continues. I've unpaired and repaired the Edge and phone several times..
I've been told in the radar forum that that radar uses it's own separate connection so if that is correct then I doubt it's causing the BT phone disconnects.
Not a huge issue really as the phone immediately reconnects but it's a serious annoyance..
I don't see many having BT phone drop issues here so I am wondering what else I should try..