Music cutting out on Apple Watch SE GPS + Cellular

I have an Apple Watch SE GPS + Cellular that I purchased in May 2023. I cannot listen to AirPods unless I hold the watch to my chest. If I put my arm down it cuts out, behind my back, cuts out. This happens with all audio (calls, music, Spotify etc). I’ve had 3 Genius Bar appointments and I’ve done many troubleshooting steps ranging from unpairing my Airpods and repairing them to unpairing and restoring my watch (now 4 times). I also realized in my troubleshooting that the WiFi only connects when in line of sight, I tested this with a hot spot and a different router. The watch does this whether it’s downloaded audio, cellular audio, WiFi audio.

1 - first appointment, AirPods replaced because they failed frequency test. Didn’t fix issue. (I’ve tried pairing different AirPods, same problem)

2 - second appointment, phone settings reset. This seemed to work for a hot second, but stopped working. I tried it again and it didn’t work.

3 - third appointment sent for a warranty repair with detailed notes on the Bluetooth/WiFi problems.

Warranty repair failed to duplicate issue and sent back. Same problem. I have a 4th Genius Bar appointment tomorrow. Anyone have any suggestions on what to do? Obviously this is very frustrating.

I’ll also mention, I have another watch paired to my phone now and I have no issues.