I’ve had this same issue ever since installing Monterey (months ago, I’m currently Lifting with my iPad because the laptop just does not work AT ALL with Monterey installed). It being beta, I hadn’t raised it as an issue (I have mentioned in support email). We’re at the point now, though, that Monterey is eminent, and this is clearly VERY broken.
I can open my System Preferences to the Bluetooth panel and see everything just fine. If I start Zwift (and shrink the window down to see Zwift and System Prefs at the same time), everything is still there, but a couple of seconds after trying to connect devices, the System Preferences Bluetooth panel goes completely empty (and Zwift doesn’t find any devices). A couple of seconds after quitting Zwift, the Bluetooth preferences dialog is populated again and everything reconnects.
This is CLEARLY an issue with how Zwift is managing it’s bluetooth connectivity that is not at all compatible with some change in Monterey, and once it is GA, there will be a LOT of users very upset. Zwift should already be testing Monterey and should be seeing this behavior. If you are testing and not seeing it, then I’d be happy to assist in trying beta releases, sending logs, etc.
I’m a developer and understand that sometimes these things can be tough to pin down (given the Zwift user base, I’m sure there are many of us). I want it to work with Monterey (clearly) and will be happy to provide whatever help I can.