Bluetooth audio distortion while the watch is paired

If I stream music (Pandora, digitally imported) from my phone via Bluetooth audio to my car, and I also have my Gear S2 paired to my phone simultaneously, I can clearly hear distortion in the audio being received by my car, as if the bitrate is being forced lower. The distortion disappears as soon as my Gear S2 is disconnected.

Is having a Bluetooth audio device and a smart watch paired together a limitation of Bluetooth bandwidth? Any remedy or thoughts?

Note 5, 2013 Honda Accord.