It happened with me twice. All of a sudden the UI will lag and Bluetooth won't work. I've to restart to get things going. The whole interface lags. Bluetooth just refuses to work. 

I made a video. 

https://youtu.be/esQ_vSV3W9s

Hi Avibharti35,

I definitely would like to help you with this. Can you provide us a bug report with Bluetooth Snoop enabled? You can follow the steps below on how to generate one. 

Generating Bug Report with Bluetooth Snoop Log Steps:
1. Go to Settings -> About Phone -> Tap on Build number 7 times on the build number to go into the developer options mode]
2. After the above steps Developer options will be enabled.
3. Go to Settings -> System -> Advanced -> Developer options -> Enable USB debugging > Toggle On
4. Enable Settings -> System -> Advanced -> Developer options -> Enable Bug Report shortcut > Toggle On
5. Enable Settings -> System -> Advanced -> Developer options -> Enable Enable Bluetooth HCI snoop log > Toggle On
6. Once the issue is reproduced, Go to Settings -> System -> Advanced -> Developer options -> Click on take bug report or Press Power button and then choose Bug Report from the Power down menu.
7. Wait for some time until the bug report is collected. It takes around 3 to 4 minutes to collect the Bug Report.
8. Then upload the Bug Report to your personal Google Drive
9. Open the File Manager app on your phone and tap on Local on the top right. Browse to internal.
10. Share the link to the Bug Report via a private message.
11. Provide observations of what you saw happen right before the bug report was taken. Please indicate the time that you observed the behavior in local time.
12. One completed to Settings-> Developer options -> Enable Bluetooth HCI snoop log > Toggle Off

Best regards,
Zeke
Motorola Support

@ Avibharti35 wrote:

I' provided the bug report as you asked.

Thanks for sending us the bug report. I'll have it sent to our team for further investigation. We will let you know once we have some updates about this. 

Best regards,
Zeke
Motorola Support

@ Avibharti35 wrote:

Only a reboot solves it but again after some time same issue. Please look if the audio effects is causing something? As everytime turning it of or off shows a audio effects notification.

We have checked that this is a hardware issue on the Bluetooth. We suggest to send the phone to a service center to have it repaired or if you are within the return period, have the phone returned for refund.

Best regards,
Zeke
Motorola Support

@ Avibharti35 wrote:

Is it with every device? Also reboot does fixes it for some time.

We do not see this on every device? We also saw that you turned off audio effects and you did not experience the problem again. What audio effects are you talking about? 

Best regards,
Zeke
Motorola Support

The equaliser 'audio effects' that comes built-in. If I enable and change it causes BT to malfunction. After disabling it I haven't faced the issue yet. Please look into it.