This issue was caused by Microsoft themselves. The Windows Update updated the Bluetooth driver which rendered it unusable. It did this in the background and so many were caught off guard when their mice and other devices stopped working.
The actual solution is to make your way to the device manager (ask for it in search) and remove the distressed Bluetooth device. This is the one with the yellow exclamation. The system will send up a warning that you are removing it, ignore that and continue.
Then restart the computer. The computer will restart and Windows will then rediscover the Bluetooth radio and add it back with the new update. Microsoft needs to send out a warning when they are about to update system drivers. This caused me major issues on my desktop because there was no touch screen on my monitor and I had to find a different device to plug into the computer in order to navigate to the device manager and then restart the system.