Phone Screen Flickers when BT connected

It could be a bad Nav/display system and should be replaced. I would take it to your dealership and show them, especially if you can step through it and reproduce it so they can see it happening. Should be covered by your Warranty as I doubt you would go out of your way to mess with the display.

 

Are you driving when this happens? If so, that's the expected lock out. If it's happening when you're just sitting there in your car, check your phone to see if it's showing anything like an unstable connection. Do you see any messages show up on the screen when it happens?

 

1- I've attached pics of my car seats. Sorry, the car is in the garage and I'm using my cellphone for pics. The latch anchors are hidden...there are small zippers that conceal them (the second picture should give you an idea of where to look).

If you have a front facing car seat similar to mine the back tether anchors are at the base of the seat backs. They can be accessed by sliding the seats forward and you can feel a small bar to hook it into .
Try this link for better pictures.
2012 Toyota Prius v: Car Seat Check - KickingTires

2- Those options become locked out when the car is moving. Toyota's nav nanny. I don't know about why your phone flickers. I have an iPhone 4. Honestly, I think they jumped the gun on the whole Entune system and look forward to seeing the improvements.