Apple TV remote intermittent response

I have an ATV 4K that has an issue where the remote intermittently responds to button pushes and sometimes will display a "Remote lost connection" message on the screen.

Before you think the solution is simple, here is the list of the things I have done to troubleshoot the issue:

1. Charged the remote fully, no change.
2. Tested Apple TV with iPhone remote, works fine (yes, I know this does not use the same connection method)
3. Restarted the Apple TV, problem came back after startup.
4. Re-paired the remote, problem came back after a few minutes.
5. Restored the Apple TV, problem returned before I could finish basic setup items.
6. Purchase a new remote, problem returned after pairing the new one.
7. Swapped remote that is working fine on another Apple TV, problem stays with original system.
8. Swapped Apple TV from another room (that has no issue with remote), problem stays with original room.

I am not sure what else I can do to alleviate the problem. It does not appear to be an issue with the hardware or software but the location of the system. Besides selling the house and moving, any other ideas?