I also have this error. When I first got Zwift it seemed to work fine, but then since the start of this year I’ve not been able to get it to work reliably.
I have tried sooo many different things to remedy the problem. I’ve turned all my bluetooth devices off, removed my HDMI and turned off my external screen. bought a USB extension, bought a boosted USB extension, bought a power supply to boost the boosted extension, tried different USB ports on the PC, killed off the garmin apps on the PC and the phone, turned my whole setup 180° to match how it was last year…
Eventually I ditched ANT+ and used an old phone as a bluetooth bridge. I thought all my problems were solved until a couple of rides in. My power output seemed a bit low, then suddenly dropped out entirely: --W
I was on a group ride at the time so it was pretty annoying. It doesn’t inspire me to get on it much. It seems Zwift is determined to not work for me.