iPhone does not auto connect with any bluetooth devices other than the Apple Watch

I've had this issue since one of the last IOS 17 versions, I am currently running IOS 26. My phone is an iPhone 12 Pro, 256GB. I was hoping a major IOS update would fix it but apparently not.

When I try to connect to a Bluetooth device, it instantly says "Connection Unsuccessful, Make sure device xxxx is turned on and in range".

The phone does not even try to search for them (the loading symbol when you click a device), it just instantly says it can't find it. To temporary fix this I need to toggle my Bluetooth off and on. After that it works as intended again for x amount of time.

This issue is present on all my Bluetooth devices (headphones, Airpods, Carplay, Headset, JBL Speaker, Windows laptop....)

I have already tried restoring the device but the issue stays present. I have also tried removing all of the devices and adding them again, including my watch.