Yep, this is a completely normal issue. Android Auto and CarPlay will always have priority especially if you have a recent model year car.
I also get this issue on my Street Guardian 9667DC2K on my Android phone with Android Auto on my 2021 Mazda CX-5.
My solution to this is to temporarily turn off/disable Bluetooth on my phone via my quick settings notification pull down, and that kills Android Auto completely(and it does not try to reconnect by kicking the dashcam WiFi out).
Then connecting to the dashcam's WiFi will work after that. When I'm done whatever I wanted to do concerning WiFi on the dashcam, I go back to my quick settings to enable Bluetooth and Android Auto reconnects again.
I only connect to WiFi on my dashcam probably no more than 5 times a year and it takes me less than a second to enable/disable Bluetooth, so this issue does not register on a list of major problems.
Not sure if this will work with CarPlay, but I assume that it will giving the similarities with Android Auto?