Thanks for the advice, I think we will ask our local dealer to replace some of the hardware and not just update the car software. We will also try a phone restore. It's an iPhone we use. If that doesn't work we'll try another dealer.
It's a shame as it's a great car but niggles like this really bother the wife.(it's her daily driver). She only uses her car for the daily commute so not being to phone or listen to music on her longish journey when she wants really annoys her. It's understandable as this is a £40k car not a Hyundai. I drive an "inferior" A4, everything works fine on that.
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