I just tried running the command to turn off le when connected to a
device and I got the same message 'status 0x0a (Busy)' so perhaps you
are already connected to something.

My suggestion is to unpair all devices (if you have any paired) and running the 
command:  
rfkill block bluetooth 

That command soft blocks the bluetooth adapter - so it won't be able to
attempt any connections. After is it blocked try running the le commannd
again (sudo btmgmt le off)

Then unblock the bluetooth adapter by: rfkill unblock bluetooth.

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https://bugs.launchpad.net/bugs/1490349

Title:
  15:10 and 16.04: bluetoothd reports "Not enough handles to register
  service" at start

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