Just replace
/lib/firmware/intel/ibt-hw-37.7.10-fw-1.80.2.3.d.bseq
with the file mentioned in comment #1
https://bugs.launchpad.net/ubuntu/+source/linux-firmware/+bug/1591167/comments/1
If it is really the same issue for you - it will fix your problem.

Meanwhile the bug has been fixed for Ubuntu 16.10 (Yakkety Yak):
http://packages.ubuntu.com/yakkety/linux-firmware
linux-firmware (1.160) yakkety includes the fix already:
http://changelogs.ubuntu.com/changelogs/pool/main/l/linux-firmware/linux-firmware_1.161/changelog

** Changed in: linux-firmware (Ubuntu)
       Status: Confirmed => Fix Committed

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https://bugs.launchpad.net/bugs/1591167

Title:
  Bluetooth: hci0 link tx timeout with Intel Corporation Wireless 7260

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