I've had similar problems with the UX on AirPods. Here are the choices in Bluetooth for AirPods to connect to my Mac: 1. Automatically 2. When Last Connected to this Mac

What does #2 even mean? I want my AirPods to connect when I last connected?

It's been common for me using my AirPods to take a pause in talking and while using my PC for the AirPods to detect sound on my PC and then switch.

Yes, definitely better than many other Bluetooth earbuds but I think people were hoping Apple's control of the OS and hardware would've produced a better, consistent experience.