Bluetooth connection to device fails from Ubuntu 16.04

[J.D.]

Bluetooth connection to a bluetooth IOIO device fails using a USB bluetooth adapter from a Ubuntu 16.04 system. The same device could be successfully connected using two non-Ubuntu systems:
  a) The same system hardware setup (dual-boot) running Windows 8 could connect without any problems. Also could run applications using serial-port associated with this connection.
  b) Android Note 4 device using bluetooth was able to successfully connect and run apps.

Therefore, it was concluded that the Ubuntu 16.04 bluetooth service has a problem.

Note: The USB bluetooth adapter used: BTA8000 from Cirago on the ubuntu system as well as the IOIO device. The adapters on the device and system have been verified to have different MAC addresses and works well with other devices.

Procedure: Using the Bluetooth control in system-tray -> Bluetooth settings -> +, the device was located as IOIO (8A:22). Here, device was clicked upon, changed PIN to 4545 and pressing next resulted in the device being successfully added. However, the system-tray status of the device continues to say Connection is OFF. Attempting to turnon connection results in changing the system-tray blue-tooth icon to Keys-Icon for few seconds and then reverting back to the bluetooth icon. The device remains in disconnected state and cannot be accessed.

The btmon trace (log-line 1277) and bluetoothd syslog (log-line 405) logs seem to indicate that the local host is sending a disconnect request after receiving a SDP: Service Search Attribute Response from the device. The src/device.c:connect_profiles() /org/bluez/hci0/dev_00_1B_DC_06_8A_22 (all), client :1.73 must result in connection setup - not disconnect.

Log information was collected for the above procedure.
systemInfo.txt: Information about the system bluetooth.
syslog.blue: syslog with busr/lib/bluetooth/bluetoothd --noplugin=sap -d in /lib/systemd/system/bluetooth.service
btmon.log: result of running sudo btmon

ProblemType: Bug
DistroRelease: Ubuntu 16.04
Package: bluez 5.37-0ubuntu5 [modified: lib/systemd/system/bluetooth.service]
ProcVersionSignature: Ubuntu 4.10.0-27.30~16.04.2-generic 4.10.17
Uname: Linux 4.10.0-27-generic x86_64
ApportVersion: 2.20.1-0ubuntu2.10
Architecture: amd64
CurrentDesktop: Unity
Date: Sun Jul 23 01:28:38 2017
InstallationDate: Installed on 2017-06-03 (49 days ago)
InstallationMedia: Ubuntu 16.04.2 LTS "Xenial Xerus" - Release amd64 (20170215.2)
InterestingModules: rfcomm bnep btusb bluetooth
JournalErrors:
 Error: command ['journalctl', '-b', '--priority=warning', '--lines=1000'] failed with exit code 1: Hint: You are currently not seeing messages from other users and the system.
       Users in the 'systemd-journal' group can see all messages. Pass -q to
       turn off this notice.
 No journal files were opened due to insufficient permissions.
MachineType: Hewlett-Packard HP ENVY dv7 Notebook PC
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-4.10.0-27-generic.efi.signed root=UUID=1c1d284c-53a1-46dc-bc01-8555da60ad7e ro quiet splash vt.handoff=7
SourcePackage: bluez
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 11/02/2012
dmi.bios.vendor: Insyde
dmi.bios.version: F.22
dmi.board.asset.tag: Type2 - Board Asset Tag
dmi.board.name: 181C
dmi.board.vendor: Hewlett-Packard
dmi.board.version: 52.24
dmi.chassis.asset.tag: Chassis Asset Tag
dmi.chassis.type: 10
dmi.chassis.vendor: Hewlett-Packard
dmi.chassis.version: Chassis Version
dmi.modalias: dmi:bvnInsyde:bvrF.22:bd11/02/2012:svnHewlett-Packard:pnHPENVYdv7NotebookPC:pvr088A110000305920000620100:rvnHewlett-Packard:rn181C:rvr52.24:cvnHewlett-Packard:ct10:cvrChassisVersion:
dmi.product.name: HP ENVY dv7 Notebook PC
dmi.product.version: 088A110000305920000620100
dmi.sys.vendor: Hewlett-Packard
hciconfig:
 hci0: Type: BR/EDR Bus: USB
  BD Address: 00:1B:DC:06:89:C5 ACL MTU: 310:10 SCO MTU: 64:8
  UP RUNNING PSCAN
  RX bytes:242328 acl:898 sco:0 events:316 errors:0
  TX bytes:11991 acl:125 sco:0 commands:112 errors:0
syslog:

[Daniel van Vugt (vanvugt)]

I was experiencing similar problems, sometimes, until recently. The problem went away for me more recently in 17.10. Can you please try live booting:
   http://cdimage.ubuntu.com/daily-live/current/
and see if the problem is fixed there in 17.10?