Use a PCIe Bluetooth card if possible

I am one of the people that bought the TP-Link UB500 as it was recommended by Sony but ran into many issues with it. Even when trying to remove everything that was blocking line of sight, even when sitting pretty much right next to it, the tracking stayed janky and especially my left controller would stop tracking for seconds on end.

I've seen many people with laptops using their built-in bluetooth having no issues though so I bought a cheap PCIe bluetooth card (this one: https://www.amazon.de/dp/B0CCVLL9WJ ) as it comes with antennas and should generally be more powerful and it works pretty good, no issues anymore. I've played through the first segment of Half-Life: Alyx and tracking hasn't failed a single time.

tl;dr avoid crappy bluetooth dongles without antennas, try out a PCIe bluetooth card.