We're in 2021 with almost 500 users that bothered to do a research and reach this forum/thread while the Bluetooth products are blamed, and thousands of other people complain as more and more people are switching to wireless devices. The issue is still here since over a decade. My wild guess would be that the problem is within the "Advanced" Audio Distribution Profile (A2DP).
My wife just bought Razer Kraken BT Kitty Edition headset, and as soon as she connects to discord or any other communication app on her laptop (MSI GP65), the sound quality drops to garbage. There's no cord, so it means no work around it without getting a separate mic (which loses the point of buying a good headset with a mic). We figured out that the "hands free" is the problem, and tried everything to make the stereo sound work with the "hands free" mic, but no luck.
So I'm just gonna complain over here after reading this thread and trying all the methods that "could" be a solution, and wait for an answer.
Just the thought that a $100+ headset that you bought have a $15 sounds quality when you want to communicate with other people and you can't get to use the whole value of the headset because of this kind of problem, is just absurd. Hope this gets more attention, blow up the internet, and will get fixed.
For now we're probably gonna stick with the stereo sound, and laptop mic until Microsoft will address it.
As many explained before me, to do that just to to Control Panel > Sound > Disable the "hands-free" devices in the Playback and Recording, and set the non-hands-free device (stereo for us) as default for just set it active in the application/software. In the communication app, use the other microphone (laptop's mic in our case). Or you can disable the "hands free"/"telephony" option all along inside the device properties. Doing that will disable your headset's mic, but you'll have the original sound quality of the product.