We are working as fast as possible to fix all issues. I just pushed a new app (1.8.0) with the functionality you are describing: Start / stop AA based on the BT handsfree of the car is connected. I'm not terribly convinced yet this is going to work correctly on all phones though, so I pushed it to the beta channel first for some feedback.
Also the initial setup bug you are describing should've been fixed. This happened because the list of devices was based on the bluetooth devices of the phone. However if bluetooth is off, the list of devices is empty. And if the device list is empty, it starts the setup. We are now saving a copy of the device list in our own local database.
Ah, that'll do it! As I have been running my phone primarily with BT disabled the past couple weeks, particularly when I forget to unplug the AAW from my car. Funny thing (as I know there were initial Wi-Fi signal strength issues pre-production) I can be sitting in my living room and my phone will spontaneously start trying to connect to my car, hours, heck even a day, after getting out of my car. There is certainly no lack of signal strength in the production version of AAW
Is there a an open beta link / invitation you can share? I just checked the play store and it doesn't appear a public beta group is configured for the app.