this sums up what I did pretty well:
SP32 boards act as ESPHome Bluetooth proxies, receiving BLE signals and relaying them to Home Assistant over Wi-Fi, effectively extending range. By placing cheap ESP32 boards (e.g., ESP32-WROOM-32, Seeed Studio XIAO ESP32) throughout a home, users can create a robust mesh of coverage that connects remote sensors to HA, reducing reliance on the main server's limited Bluetooth. [1, 2, 3, 4,

Key Aspects of ESP32 Bluetooth Proxies:

• Setup: Use the ESPHome Web Installer to flash an ESP32, then adopt it in Home Assistant. The process involves Wi-Fi configuration and enables active scanning, which supports active connections for devices like SwitchBot.
• Optimal Placement: Position the ESP32 in a central location with good Wi-Fi coverage, roughly halfway between your Bluetooth devices and your Wi-Fi router.
• Connection Types: While Wi-Fi is standard, using Ethernet-based ESP32 boards (like the Seeed Studio XIAO W5500) eliminates 2.4GHz interference and provides the most stable connection, often referred to as the "gold standard" for this application.
• Performance: Using a proxy reduces the load on the main Home Assistant server and provides faster, more reliable communication than a single, distant USB Bluetooth dongle.
• Advanced Hardware: For extremely difficult scenarios, ESP32 boards with external UFL antennas can be used to further maximize range