Endless buffering when having an apple watch & airpods connected to same iphone

Hi. So the issue is the following:

If I connect my Airpods (2nd gen, Wireless) through bluetooth to my iPhone, and then I turn on my Apple Watch (series 3, latest Watch OS) -- I'm not able to play anything on my iPhone. I go to bluetooth and I see that Airpods & Apple Watch are connected to my iPhone through bluetooth. If I go and try to play anything on Youtube, TikTok -- Nothing plays. everything is stuck, keeps loading.

To fix this I have to shut off my Apple Watch, then it's working. So I've discovered that the issue is something regarding the bluetooth, i'm not able to connect two apple devices through bluetooth to the same device ??

Any ideas how to fix this ?