Ok. You must mistakenly paired your phone to your watch some how. My Nexus 5 doesn't show up on my watch at all. That status screen is meant to show BT stereo devices to playback audio to the listed device. I found I can pair a BT headset (HFP, no BT stereo) to it but it will never connect (always show disconnected as your phone does). I have another BT headset that supports both HFP and Stereo. It will connect but only stereo audio part work. Phone calls are still going through watch speaker, even if the watch is disconnected from the phone.
There is zero need to intentionally pair your phone to the watch. It won't do anything
BTW, mono earbud can support A2DP profile as well. It is the HFP profile that won't work. HFP is for phone call studio. Rest of them go to A2DP.
I appreciate all your answers this past week, I really do.
I do need to point out that, of course, you need to do an initial pair as part of the setup. To my knowledge, I never did any other pairing. That being said, I did a factory reset due to a bunch of funky issues like the watch going through a boot up three times in a row every single time after turning it off and back on. That's now stopped, and my phone isn't showing up any longer in Bluetooth settings (and it wouldn't delete prior to the factory reset).
So I'm good now, other than these things I'd like to see, or wish the watch had included (some are watch specific, some are Android Wear) :
1. Option for stronger vibration
2. Sounds option for all notification types (like texts)
3. Auto brightness
4. A dark UI theme (too much blinding white)
5. A less finicky charger
6. Ability to answer a call on the watch and transfer to a BT headset
7. Ability to change how long before watch face dims
8. Ability to set always-on watch face dimmer than current
9. Ability to assign whatever we want to the two buttons
10. A search option in the phone app
11. Bring back the Restart setting
12. Option to decide/hide apps from watch
13. A watch face that allowed us to assign up to three complications (included) from LG