Bluetooth Hands-free bad sound when network is receiving data

I'm facing this weird issue with my laptop. When I use my Bluetooth Hands-free for watching videos on Youtube it works fine up to 480p but above this, its sound becomes bad and lags a lot like a poor network connection while calling. I don't face this issue while watching any local video even at 1080p. I do face this issue when I am watching even at 144p and downloading something in the background. I opened gnome-system-monitor and found that whenever the network data receiving graph goes up the sound lags. What it could be? Do I have weak Bluetooth hardware? I would like to mention here that I used the same handsfree on my desktop PC and it works fine there. I just face this issue on my laptop.

I'm using Ubuntu 21.10, BTW I was facing the same issue in the previous release also.

Here's hciconfig -a output.

hci0:   Type: Primary  Bus: USB
    BD Address: 10:4A:7D:43:E4:0E  ACL MTU: 1021:5  SCO MTU: 96:6
    UP RUNNING 
    RX bytes:431332 acl:47 sco:0 events:61392 errors:0
    TX bytes:37711848 acl:61312 sco:0 commands:68 errors:0
    Features: 0xff 0xfe 0x0f 0xfe 0xdb 0xff 0x7b 0x87
    Packet type: DM1 DM3 DM5 DH1 DH3 DH5 HV1 HV2 HV3 
    Link policy: RSWITCH HOLD SNIFF 
    Link mode: SLAVE ACCEPT 
    Name: 'shahxad'
    Class: 0x6c010c
    Service Classes: Rendering, Capturing, Audio, Telephony
    Device Class: Computer, Laptop
    HCI Version: 4.0 (0x6)  Revision: 0xe00
    LMP Version: 4.0 (0x6)  Subversion: 0xe00
    Manufacturer: Intel Corp. (2)

and here's lspci -knn | grep Net -A3; lsusb

09:00.0 Network controller [0280]: Intel Corporation Wireless 7260 [8086:08b1] (rev c3)
    DeviceName: Intel Stone Peak 2 7260 ac 2x2 + BT4 LE Combo
    Subsystem: Intel Corporation Dual Band Wireless-AC 7260 [8086:c070]
    Kernel driver in use: iwlwifi
Bus 002 Device 001: ID 1d6b:0003 Linux Foundation 3.0 root hub
Bus 001 Device 003: ID 064e:9314 Suyin Corp. HP TrueVision Full HD
Bus 001 Device 002: ID 8087:07dc Intel Corp. Bluetooth wireless interface
Bus 001 Device 004: ID 04f3:2016 Elan Microelectronics Corp. Touchscreen
Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub

You can try to improve performance on the same 2.4 GHz band by running

sudo tee /etc/modprobe.d/iwlwifi-opt.conf <<< "options iwlwifi bt_coex_active=N"

Then reboot.

The setting can be reverted by

sudo rm /etc/modprobe.d/iwlwifi-opt.conf