Yes, Bluetooth is definitely still supported. We are terribly sorry to have overlooked your detailed post on your issues with Bluetooth. We do owe you a response.
However, the Bluetooth technology can be tricky. Some device’s protocols and household’s networks may vary and cause very different issues. Playback issues like these are hard to diagnose. However, the error in the LMS should not occur. Have you tried installing the new 7.9 stable version based on armHF that we recently included? It might work better with the plugin.