I will finally close out this thread and perhaps provide some motivation for others to work with Microsoft to fix the problems.
I have found no solution. My case was escalated to Level 3 MS support where for over 3 months it existed as an open case. MS support spent several hours on phone calls and remote computer access trying to get the problem fixed. And to be clear, MS is well aware of the problem and can replicate the issue in their labs. According to the rep handling the case MS will not or cannot fix the problem since it appears to be a near random event. Some phones reliably work and others do not. Some computers (or computer manufacturers) systems work and others do not. MS claims that the Bluetooth connectivity is root cause for why the call feature will not work.
The final suggestion from MS was to purchase a separate BlueTooth Radio for my computer and see if that would allow a connection. The alternative - and more expensive route - is to purchase a phone that can work with the software. But even on that score MS was not much help. They could not tell me what brands or style within brand of phones were problematic.
I find the whole Bluetooth radio story to be a bit of a stretch. Once a phone is paired I can sit in any of the cars I own or rent and make a Bluetooth enabled call without a hiccup. I have a difficult time believing that the protocols for pairing and connecting a phone to a device are not well worked out. MS seems not to have implemented them in a robust manner. In short, what could be an extremely useful piece of software is left to wilt owing to insufficient development support from MS. Who knows, maybe MS simply wants to push you to using Skype.