Thanks for the breakdown, but it still shows up. I did as you suggested, even added additional steps.
1.) Paired and unpaired as you suggested above.
2.) Multiple reboots of both ATV and phone after variations of pairing and unpairing.
3.) Kept a long enough distance (30ft) so there was no possibility of my iPhone picking up the ATV proximity pairing.
4.) Removed and reinstalled the legacy remote app on my iPhone.
Here are my thoughts, and would love if Apple can chime in here as well.
1.) My ATV is being used as an Apple HomeKit hub. So without even me pairing my phone to the ATV, it automatically keeps prompting me to type on my iPhone whenever a text entrance is required on the ATV.
2.) With WiFi disabled on my iPhone, the problem disappears.
3.) With WiFi disabled on my ATV, the problem disappears.
4.) Even my wife’s phone has the same problem and her phone has never been paired with the ATV. It has never shown up in the remotes and devices pairing list on the ATV.
This is driving me crazy and is such an inconvenience when switching over to speaker and having the other person to wait a few seconds of silent pause to do so.