I had the same issue - the headphones are not recognized as Audio Device. I found an answer in a different thread:
"...what worked for me was making sure the headphones are in PAIRING MODE, as described here. After your headphones confirm they're in pairing mode, detect new devices on your PC, and the headphones will show up as such, and not as 'other devices'. Good luck. The answer above about the factory reset was not necessary."
So, it was a matter of holding the Power button on the headphones for few more seconds until it says "bluetooth paring" and gets into pairing mode. That's all.
- Headphones OFF
- Press on the Power button and hold it
- First, it will say " power ON", then keep holding the button until it says "Pairing".