Bluetooth cutting out randomly on my Mac when using wireless headphones has been an issue for me for ages. I assumed it was because of everyones BT devices in the office but I'm here by myself this morning and it was still happening.

Had a google around and found this thread on Reddit and it solved it. Settings > Sharing > Turn off AirPlay Reciever.

I wish I'd looked for a solution sooner.

Update for Ventura: System Settings > General > AirDrop & Handoff. Thanks Trevor.