Bluetooth Headset cannot be used as both headphones and speakers

If that is the case, then this problem is entirely Microsoft's fault. Who cares about being able to wear their headset an additional 5-10m, when either the mic is not working at all, or it is working but the sound quality is ****? Most people just want to wear a wireless headset during office/gaming and if the occasional run to the fridge breaks to the connection due to being out of range, the device will reconnect when in range again. 

The fact that this problem persists for YEARS tells me that there may be a deep-ranging kernel issue that can't be patched easily. Come on Microsoft most of the industry has moved on to using Bluetooth headphones, why can't you? 

With the Apple M1, my next system will most likely run on MacOS.

You need to set Headset BHS as default device instead of Headphones BHS, and same for input, and also for Loconius, actually its stereo also with Windows when set to headset just lower bitrate than android and IOS, that is a decision that was made by the Bluetooth stack developers on Windows, they can choose to stream at a higher bitrate but you will lose range, bluetooth range depends on bitrate, for phones it was assumed you are always in max 5-10m range, I can get with my headset on Windows 10 with stereo sound (high bitrate) tru' 3 concrete walls and about 20-25m and I can still get perfect sound, something my phone will not do even when just playing music, in a call its even worse cause Android and iOS also switch profiles from A2DP to handsfree different bitrates but still worse than pure A2DP

EDIT: A Clear paired devices on the headset/headphones is recommended and also you should remove the devices from paired devices in Windows, then pair again, and without any apps opened that use the mic, set for both recording and playback the "Headset" device

This should work on Windows 8.1 and up, I have tested this with bluetooth 2.0 (or2.1) from a Lenovo T61 from 2007 and it works perfectly on 8.1 and latest version of windows 10 with my headphones (Sennheiser HD.4.40)

Feel free to write me for any more help :)

The only negative is stereo playback doesn't work when I do this

I have a bluetooth headset that does not allow me to use it as both a microphone and a headset.

I have determined that audio will play through the Bluetooth headset as long as the recording device is set to Conexant ISST Audio.  If I set the recording device to BHS-530 Hands-Free then no sound will play through either BHS-530 Playback device.

I can get audio to play while the BHS-530 Handsfree is setup as the Recording device but not while it is actively listening.  As an example my BHS-530 Stereo is selected for both my default audio and default communication device.  I start playing a YouTube video and audio works with the Playback menu is up in the Sound dialog (first screenshot), as soon as I select the recording menu (second screenshot) the audio stops.  If I switch the recording device back to Conexant ISST Audio the youtube video will continue to send sound regardless of which menu I am on.

What do I need to set so that I can use the headset for both audio and microphone (Microsoft Teams Calls)

The headset comes up as two separate devices once it connects to windows:

Playback Device

Type: Headset

Name: BHS-530 Hands-Free

and

Type: Headphones

Name: BHS-530 Stereo

Recording Device

Type: Headset

Name: BHS-530 Hands-Free

Type: Internal Microphone

Name: Conexant ISST Audio

(this is my laptop's internal mic)

This is to do with how blue tooth headphones are made.

Bluetooth headphones that includes are microphone built in have two types of profiles.

One is stereo(BHS-530 Stereo) which is the good quality audio playback device on your blue tooth headphone, (this allows you to listen to music or watch music with nice quality sound).

The second profile is the communication / voice call profile. In order for the microphone to properly function the only way to use microphone install on the headphone and speaker on the headphone is to use a lower quality play back device ( In this case BHS-530 Hands-Free ). There for if you want to use the microphone install ( Under recording tab BHS-530 Hands Free ) you have to use the lower quality playback device ( Under Playback tab, BHS-530 Hands Free ). 

As far as I know there's no permanent work around for this problem unless you get an external microphone and set external microphone as default communication device and then set BHS-530 Stereo as Default Device  OR   Get a really super high end Bluetooth headphone which will allow you to use stereo and microphone at the same time.

There's more information found on this Dell Forum 
https://www.dell.com/community/XPS/Can-t-hear-all-sounds-at-once-when-bluetooth-headphones-are/td-p/7548473 

P.S. Although to be honest the Hands free playback device isnt terrible where you cant hear anything but you can tell that the quality is not something you want to hear for over an hour because its just painful to hear over long periods of time 

Edit 1: There could be some third party software to unlock / solve this issue but that just makes things complicated and its going to be another long story on how to set up and etc

Edit 2: If you're looking for external microphones (which I do recommend because they do have really good microphone quality and it does sounds really nice ) here's a link        https://www.amazon.com/s?k=Microphone&ref=nb\_sb\_noss\_2

Edit 3: I know I know but I just keep forgetting to mention stuff, here's another forum on possible fix however there's no guarantee that it'll fix the problem 
 https://superuser.com/questions/930251/possible-to-use-bluetooth-headset-in-stereo-mode-with-mic

Its not hardware, on my bootcamped mancbook pro, the bluetooth headset works like it does on a phone, but when I boot into windows I have this same issue. It seems to follow the operating system and not the hardware. Even my wife’s surfacebook 2 does this, and its basiclally a tablet that requires this to work when detached from the base