It's probably the DSP. It can do it's magic given a digital signal, while being bypassed (on most BT headphones, so you could still use them with a dead battery) with an analog signal.
this post was submitted on 26 Nov 2023
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But he says that even in USB them sounds worse than bluetooth. And USB still uses the DSP. So this might not be the case.
Might be the amps. Some phones have crappy audio circuits.
this is the correct answer, your bluetooth probably has a better amp/dac circuit than your phone does. a dongle would be a better comparison point than straight to the phone.
Trying to make dongle comparison with headphones is solid point.
Is the Bluetooth connection using headphones dac/amp and wired is not?