Found it. Forgot to trust the controller in bluetoothctl:
[bluetooth]# trust 1C:96:5A:53:C1:C3 [CHG] Device 1C:96:5A:53:C1:C3 Trusted: yes Changing 1C:96:5A:53:C1:C3 trust succeeded [CHG] Device 1C:96:5A:53:C1:C3 Connected: yesIt now stays on.
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