I assuming that you are connecting wirelessly? Your phone is already paired via Bluetooth so it should just work. The fact that it is (apparently) dropping the connection could be due a number of reasons. AA requires Bluetooth and wifi, so the problem is probably the latter, as suggested by the error messages.
Although I don't use AA very often in my 8.5 (the native satnav is pretty good), it have tested it a few times and have been surprised how well it works (Google maps, Waze, etc). This is wireless of course. It might be worth trying connecting your phone via a quality USB lead (I got a VW-approved one supplied with the car) and see if that kicks AA into life. However, I suspect that you might end up booking it in for a dealer check.
These connection problems can be very frustrating! I had an M135i back in 2020 which had wireless AA listed as a feature but it never actually worked! BMW blamed my phone, which was an up to date Samsung. I was obliged to connect via a USB lead if I ever wanted to use AA, which is a pain when you are 'on the move'. I now have a Google Pixel 8, which works very well for both calls and AA. I see that you also have a Pixel, so I doubt that that is anything to do with the problem.
Hope you get it sorted.