Intel Wireless 8260 [8086:24f3] Subsystem [8086:9010] Bluetooth is disabled in gui, but audio reciever's action button still controls Ubuntu

Current behavior:
In gnome-control-center I see the Bluetooth slider is set to Off and the status shows "Bluetooth Turned Off".

My Bluetooth audio receiver which had previously been paired can still control VLC, or any other compatible media player with a Pause/Play button. If no compatible app is running then an error icon appears.[0]

Expected behavior: when gnome-control-center Bluetooth shows Disabled, then no bluetooth device should be able to communicate with the computer.

Security: This is way out of my wheelhouse, but if this goes beyond my use case, could this have security implications? Just the fact that the bluetooth subsystem is functional when the UI says it is not, seems like a bad sign, correct?

EDIT: as a next step, when I enabled Bluetooth in gnome-control-center I see the device's status as "Disconnected" and the device does not appear as a possible sound output device in Sound settings. In this Bluetooth enabled state, the pause/play button still works. When I disable all Bluetooth, the pause/play button still works.

EDIT2:
I'm not sure what the gnome-control-center Bluetooth On/Off slider is supposed to do, but while gnome-control-center Bluetooth shows disabled the service is still running.

$ service bluetooth status

 bluetooth.service - Bluetooth service
     Loaded: loaded (/lib/systemd/system/bluetooth.service; enabled; vendor preset: enabled)
     Active: active (running) since Fri 2020-06-26 10:09:48 PDT; 2 days ago
       Docs: man:bluetoothd(8)
   Main PID: 935 (bluetoothd)
     Status: "Running"
      Tasks: 1 (limit: 38343)
     Memory: 3.0M
     CGroup: /system.slice/bluetooth.service
             └─935 /usr/lib/bluetooth/bluetoothd

Jun 26 10:09:48 nyuk bluetoothd[935]: Bluetooth daemon 5.53
Jun 26 10:09:48 nyuk systemd[1]: Started Bluetooth service.
Jun 26 10:09:48 nyuk bluetoothd[935]: Starting SDP server
Jun 26 10:09:48 nyuk bluetoothd[935]: Bluetooth management interface 1.14 initialized
Jun 26 10:12:17 nyuk bluetoothd[935]: Endpoint registered: sender=:1.94 path=/MediaEndpoint/A2DPSink/sbc
Jun 26 10:12:17 nyuk bluetoothd[935]: Endpoint registered: sender=:1.94 path=/MediaEndpoint/A2DPSource/sbc
Jun 26 20:55:06 nyuk bluetoothd[935]: /org/bluez/hci0/dev_0B_26_75_03_C0_80/sep1/fd0: fd(37) ready
Jun 26 20:56:12 nyuk bluetoothd[935]: /org/bluez/hci0/dev_0B_26_75_03_C0_80/sep1/fd1: fd(37) ready
Jun 26 21:23:45 nyuk bluetoothd[935]: Failed to set mode: Blocked through rfkill (0x12)
Jun 28 20:58:41 nyuk bluetoothd[935]: Failed to set mode: Blocked through rfkill (0x12)

[0] https://i.imgur.com/e2nM7hA.png

ProblemType: Bug
DistroRelease: Ubuntu 20.04
Package: bluez 5.53-0ubuntu3
ProcVersionSignature: Ubuntu 5.4.0-39.43-generic 5.4.41
Uname: Linux 5.4.0-39-generic x86_64
ApportVersion: 2.20.11-0ubuntu27.3
Architecture: amd64
CasperMD5CheckResult: skip
CurrentDesktop: ubuntu:GNOME
Date: Sun Jun 28 21:11:45 2020
InstallationDate: Installed on 2020-06-17 (11 days ago)
InstallationMedia: Ubuntu 20.04 LTS "Focal Fossa" - Release amd64 (20200423)
InterestingModules: rfcomm bnep btusb bluetooth
Lsusb:
 Bus 002 Device 003: ID 090c:1000 Silicon Motion, Inc. - Taiwan (formerly Feiya Technology Corp.) Flash Drive
 Bus 002 Device 002: ID 152d:0567 JMicron Technology Corp. / JMicron USA Technology Corp. JMS567 SATA 6Gb/s bridge
 Bus 002 Device 001: ID 1d6b:0003 Linux Foundation 3.0 root hub
 Bus 001 Device 002: ID 8087:0a2b Intel Corp.
 Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
ProcEnviron:
 PATH=(custom, no username)
 XDG_RUNTIME_DIR=<set>
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-5.4.0-39-generic root=UUID=7d791ec0-a9ea-415e-b7ec-6260b85b55f7 ro quiet splash vt.handoff=7
SourcePackage: bluez
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 05/27/2016
dmi.bios.vendor: Intel Corp.
dmi.bios.version: SYSKLi35.86A.0045.2016.0527.1055
dmi.board.asset.tag: �=\�
dmi.board.name: NUC6i5SYB
dmi.board.vendor: Intel corporation
dmi.board.version: H81131-504
dmi.chassis.type: 3
dmi.modalias: dmi:bvnIntelCorp.:bvrSYSKLi35.86A.0045.2016.0527.1055:bd05/27/2016:svn:pn:pvr:rvnIntelcorporation:rnNUC6i5SYB:rvrH81131-504:cvn:ct3:cvr:
hciconfig:
 hci0: Type: Primary Bus: USB
  BD Address: 00:C2:C6:F8:FA:D3 ACL MTU: 1021:4 SCO MTU: 96:6
  DOWN
  RX bytes:14600494 acl:95 sco:0 events:355024 errors:0
  TX bytes:1481557 acl:1120 sco:0 commands:2519 errors:0