I finally got my updated iPhone 5S to connect normally to my 2005 Lexus, but I don't know how.
I've been following this thread from the beginning. I've seen all kinds of fix suggestions but have tried only a few. I agree with those who say "Reset All Settings" should not have to be done, and I never did that. I certainly did not return to "factory settings." I did, however, "Reset Network Settings" long ago and of course that didn't work. I've unpaired, restarted, re-paired, etc., and nothing worked. Luckily, I never installed 8.0.1, but I installed 8.0.2 last night. No help. Same problems as before.
This morning, thinking back on everyone's suggested fixes, I again unpaired from phone and car, then renamed my phone and paired once again. No one else was home, so with my iPhone in the car in my garage, I called it from my land line and went back to the garage to see if the call would be received. I had turned on the radio in the house so there would be audio if my car connected to the call (which it did). The song playing was "Knowing Me, Knowing You" - maybe that's why the call connected…
Although I've tried only two each incoming and outgoing calls, my connections worked and the indications on my navigation display were the same as under iOS 7. I have no idea if my fix was due to the 8.0.2 update (not advertised as addressing car Bluetooth issues) or if it was due to renaming my phone. All I know is that my 5S has made and received "Hands Free" calls for the first time since iOS 7.
Anyway, renaming your phone is far simpler than "Reset All Settings" and it might be worth a try if you're still having problems (Settings > General > About > Name).
BTW, my car can connect only phone calls via Bluetooth, so I can't report on iTunes streaming.
I'll report back if my problems reoccur. Thanks to all who've posted. Good luck!
Don