Bluetooth Quit Working with Volkswagon Jetta

Not quite sure what you mean by bluetooth setup being factory. Here is the situation...

• iPhone 4S originally purchased with iOS 5 version ... bluetooth connectivity with VW worked fine (this is the only bluetooth device I use with my phone). I've had the phone for about a year now.
• I've applied several iOS updates and current with 6.1.3.
• I only use the bluetooth in the car for phone calls and since I rarely get/make calls while driving I can't actually say exactly when it quite working but I believe it to be fairly recent.
• When I first noticed it I tried many times to pair the phone and car bluetooth back up. The car's bluetooth indicates it is ready to pair (light is blinking orange), I get the iPhone screen to enter the code my car's manual says to enter. When I enter the code and press the pair button it typically redisplays the code entry screen. I'll reenter and press pair again and I'll get the popup message that the pair was unsuccessful.
• I've used the car manual's step to have the car bluetooth 'forget' any paired devices multiple times and attempted to pair again but this does not help.
• I've reset the car's bluetooth module several times (unpluging the module under the passengers seat) and attempted to pair again but this does not help.
• This morning I followed your advice to reset the network settings on my phone and this did not work either.

While it's not the 'full blown' car bluetooth option (controls in steering wheel, stores phone numbers, etc) it does appear to be a VW option. It's a simple bluetooth device built into the read view miror assembly and the manuals are VW manuals. Manual states to use '0000' as code and that is what I was entering.

Thanks for trying to help.