It seems that even though Windows Phone follows the standard, there is a mismatch. I have summed my whole experience in the video below followed by details in text. There is a temporary way out but we need a permanent solution. Update 2: Uninstalling the Realtek AC’97 software from Add/Remove Software and restarting did wonders on-top of the above steps.I am seeing a lot many Windows Phone users complaining about failure in transfer of files from a Non Windows Phone to a Windows Phone and vice versa over Bluetooth. After investing and testing around a lot, I see the problem does exist which is because of unstable connection made between these devices.
Update 1: Yeah the above helped but didn’t fix it entirely, somehow unticking the Enable pointer shadow option within the Mouse Properties dialog (open Start then type in Mouse) makes a big difference, I do still notice some stutter when copying files or using Google Photos. The WiFi network adapter will restart the device so expect to lose network access for a moment before network access is restored.