I have an apple TV (4k, latest as of Nov 2023) and recently noticed some issues with the ATV controller losing connection every so often. I have also been looking into using the ATV as a remote gaming desktop using Steam Link / Moonlight and unfortunately as well the bluetooth connection is far too unreliable to use any of the game controllers I have lying about here (a couple of Playstation dual shock 4 and an 8bitdo Pro+) they are unresponsive and disconnect within 30 seconds of connecting to the ATV, when sat on the couch.
Through some trial and error I've isolated the issue to be the ATV bluetooth range being weak, pairing the DS4s with a Nintendo Switch via 8bitdo adapter next to the ATV they work fine, same with the 8bitdo controller. Moving closer to the ATV (about 2 metres, 5 feet or so) also has the controllers work absolutely fine. But from our normal sitting position (3 metres, 10 feet) the controllers lose connection to the ATV. These all work fine paired with the Switch. All controllers are charged. I've tried power cycling the ATV, reboot etc.
There has been some talk about interference potentially being an issue. Other BT/wifi/electronic devices near the ATV are the Nintendo Switch, LG TV, Samsung TV sound bar, a network switch for all these to be connected via ethernet.
So now I'm asking what else can I try? It's not feasible to rearrange furniture or the living room layout and the ATV we've tried in a few different places on the TV console, it just can't come closer to where we sit.