OK, confirmed cause and fix...
I don't post here much, but I have been testing this and can positively confirm a cause and a fix.
Of course, this is a little moot, because apparently 1.1.4 fixes this issue anyway, but I know many people with hacked phones will not be installing 1.1.4 for some time.
So, first the cause. The iPhone loses the Bluetooth connection because of a problem caused by an excess of calls in the recent calls log. Bluetooth devices, like the Garmins, request this log data. Usually a phone keeps only the last 10 dialed or missed calls. The iPhone keeps a much longer list and tries to send it all, overwhelming the receiving device, and the connection is disrupted. That's the cause.
So, the fix? Well it should be pretty obvious, and yet it really IS this simple. Go into your recent calls log and clear it. There is not step 2. That's it. Done. Fixed. Next time your device starts losing the connection again, just clear the recent calls log again.
Of course you won't it's this simple until you see for yourself. Go ahead. It works.