Btw, in case people are still wondering what the difference is between when the phone detects a connection as an Aux cable or Headset (notified by the icon, of course), what I've discovered is that the audio output when the phone thinks it's connected to a headset is significantly lower and possibly even lower quality compared to the Aux Cable connection. One day, without me noticing, the phone detects my aux connection as a headset, and I was wondering why my audio level was so low. When the phone is normally connected via Aux connection, my volume level would be around 27-32, and this would be significantly loud already. But when the phone accidentally detected it as headset, I had to crank my volume up to around 40-45, and the sound was not as crystal clear as it normally was. When I noticed it was on headset, I unplugged it and then replugged it, and when I resumed the music, I nearly blew my eardrums since it was way too loud.
I also noticed that now, whenever my gf or my friends plug in the phones (non G3) to my car, I have to crank the volume up since I have set it so low for the G3. I'm guessing there is really a benefit of the phone detecting connections as two separate types since now my audio is so much better than it used to be.
And now, just as an update to the ground loop isolator fix, after about a month of so of using it, I realize that THE solution is still not perfect. There are times when the phone still won't detect the cable plugged in, and it involves me having to unplug it and then replug it again, although doing this once normally fixes the issue immediately. There are also some cases where after plugging in the aux cable and I don't play any audio after a minute or so, the phone seems to drop the connection and I'll end up playing something out of the built in speakers. Replugging the aux cable fixes the issue immediately. These cases do happen but at a very rare rate so it doesn't really bother me.