Here is the latest I have heard from Kenwood
I asked about the static on the bluetooth connection and why the SMS doesn't work.
There is a problem with the iPhone holding specific call settings through a Bluetooth connection, causing the distorted sound. There is a patch coming out to address this but it has not been released yet. As a temporary work around, after each call you can manually switch the unit from Hands Free to Private and back to hands free, this should clear the noise.
Also, the SMS feature is working as designed on our radio. Most phones will have SMS enabled, however they will need to be able to send and receive SMS through a Bluetooth connection for this feature to work. To see if your phone is capable of this please contact the phone manufacturer and your carrier.