Same problem:

MPOW Bluetooth 5 dongle (Model: BH456A)

$ uname -a
Linux dg-dl 5.8.0-44-generic #50~20.04.1-Ubuntu SMP Wed Feb 10 21:07:30 UTC 
2021 x86_64 x86_64 x86_64 GNU/Linux

$ rfkill
ID TYPE      DEVICE      SOFT      HARD
 1 wlan      phy0   unblocked unblocked
 6 bluetooth hci0   unblocked unblocked

$ lspci
00:00.0 Host bridge: Intel Corporation 4th Gen Core Processor DRAM Controller 
(rev 06)
00:01.0 PCI bridge: Intel Corporation Xeon E3-1200 v3/4th Gen Core Processor 
PCI Express x16 Controller (rev 06)
00:14.0 USB controller: Intel Corporation 8 Series/C220 Series Chipset Family 
USB xHCI (rev 05)
00:19.0 Ethernet controller: Intel Corporation Ethernet Connection I217-LM (rev 
05)
00:1a.0 USB controller: Intel Corporation 8 Series/C220 Series Chipset Family 
USB EHCI #2 (rev 05)
00:1b.0 Audio device: Intel Corporation 8 Series/C220 Series Chipset High 
Definition Audio Controller (rev 05)
00:1c.0 PCI bridge: Intel Corporation 8 Series/C220 Series Chipset Family PCI 
Express Root Port #1 (rev d5)
00:1c.1 PCI bridge: Intel Corporation 8 Series/C220 Series Chipset Family PCI 
Express Root Port #2 (rev d5)
00:1d.0 USB controller: Intel Corporation 8 Series/C220 Series Chipset Family 
USB EHCI #1 (rev 05)
00:1f.0 ISA bridge: Intel Corporation C226 Series Chipset Family Server 
Advanced SKU LPC Controller (rev 05)
00:1f.2 RAID bus controller: Intel Corporation SATA Controller [RAID mode] (rev 
05)
00:1f.3 SMBus: Intel Corporation 8 Series/C220 Series Chipset Family SMBus 
Controller (rev 05)
01:00.0 VGA compatible controller: NVIDIA Corporation GM107GL [Quadro K1200] 
(rev a2)
01:00.1 Audio device: NVIDIA Corporation GM107 High Definition Audio Controller 
[GeForce 940MX] (rev a1)
03:00.0 PCI bridge: ASMedia Technology Inc. Device 1182
04:03.0 PCI bridge: ASMedia Technology Inc. Device 1182
04:07.0 PCI bridge: ASMedia Technology Inc. Device 1182
05:00.0 Ethernet controller: Realtek Semiconductor Co., Ltd. RTL8111/8168/8411 
PCI Express Gigabit Ethernet Controller (rev 15)
06:00.0 Ethernet controller: Realtek Semiconductor Co., Ltd. RTL8111/8168/8411 
PCI Express Gigabit Ethernet Controller (rev 15)


$ dmesg | grep -i blue 
[    2.641328] usb 3-7: Product: Bluetooth Radio
[    6.626592] Bluetooth: Core ver 2.22
[    6.626603] Bluetooth: HCI device and connection manager initialized
[    6.626606] Bluetooth: HCI socket layer initialized
[    6.626607] Bluetooth: L2CAP socket layer initialized
[    6.626608] Bluetooth: SCO socket layer initialized
[    6.860576] Bluetooth: hci0: RTL: examining hci_ver=0a hci_rev=000b 
lmp_ver=0a lmp_subver=8761
[    6.861534] Bluetooth: hci0: RTL: rom_version status=0 version=1
[    6.861534] Bluetooth: hci0: RTL: loading rtl_bt/rtl8761b_fw.bin
[    6.903755] bluetooth hci0: Direct firmware load for rtl_bt/rtl8761b_fw.bin 
failed with error -2
[    6.903759] Bluetooth: hci0: RTL: firmware file rtl_bt/rtl8761b_fw.bin not 
found
[   97.431707] Bluetooth: BNEP (Ethernet Emulation) ver 1.3
[   97.431708] Bluetooth: BNEP filters: protocol multicast
[   97.431711] Bluetooth: BNEP socket layer initialized
[  246.400802] usb 3-8: Product: Bluetooth Radio
[  246.406937] Bluetooth: hci0: RTL: examining hci_ver=0a hci_rev=000b 
lmp_ver=0a lmp_subver=8761
[  246.407880] Bluetooth: hci0: RTL: rom_version status=0 version=1
[  246.407884] Bluetooth: hci0: RTL: loading rtl_bt/rtl8761b_fw.bin
[  246.407925] bluetooth hci0: Direct firmware load for rtl_bt/rtl8761b_fw.bin 
failed with error -2
[  246.407929] Bluetooth: hci0: RTL: firmware file rtl_bt/rtl8761b_fw.bin not 
found
[  268.373795] usb 3-6: Product: Bluetooth Radio
[  268.377141] Bluetooth: hci0: RTL: examining hci_ver=0a hci_rev=000b 
lmp_ver=0a lmp_subver=8761
[  268.377947] Bluetooth: hci0: RTL: rom_version status=0 version=1
[  268.377952] Bluetooth: hci0: RTL: loading rtl_bt/rtl8761b_fw.bin
[  268.378019] bluetooth hci0: Direct firmware load for rtl_bt/rtl8761b_fw.bin 
failed with error -2
[  268.378025] Bluetooth: hci0: RTL: firmware file rtl_bt/rtl8761b_fw.bin not 
found
[  330.775006] Bluetooth: hci0: RTL: examining hci_ver=0a hci_rev=000b 
lmp_ver=0a lmp_subver=8761
[  330.776000] Bluetooth: hci0: RTL: rom_version status=0 version=1
[  330.776003] Bluetooth: hci0: RTL: loading rtl_bt/rtl8761b_fw.bin
[  330.776037] bluetooth hci0: Direct firmware load for rtl_bt/rtl8761b_fw.bin 
failed with error -2
[  330.776040] Bluetooth: hci0: RTL: firmware file rtl_bt/rtl8761b_fw.bin not 
found
[  418.646117] Bluetooth: hci0: RTL: examining hci_ver=0a hci_rev=000b 
lmp_ver=0a lmp_subver=8761
[  418.647121] Bluetooth: hci0: RTL: rom_version status=0 version=1
[  418.647125] Bluetooth: hci0: RTL: loading rtl_bt/rtl8761b_fw.bin
[  418.647168] bluetooth hci0: Direct firmware load for rtl_bt/rtl8761b_fw.bin 
failed with error -2
[  418.647172] Bluetooth: hci0: RTL: firmware file rtl_bt/rtl8761b_fw.bin not 
found
[  435.976571] usb 3-7: Product: Bluetooth Radio
[  435.980209] Bluetooth: hci0: RTL: examining hci_ver=0a hci_rev=000b 
lmp_ver=0a lmp_subver=8761
[  435.981140] Bluetooth: hci0: RTL: rom_version status=0 version=1
[  435.981143] Bluetooth: hci0: RTL: loading rtl_bt/rtl8761b_fw.bin
[  435.981169] bluetooth hci0: Direct firmware load for rtl_bt/rtl8761b_fw.bin 
failed with error -2
[  435.981171] Bluetooth: hci0: RTL: firmware file rtl_bt/rtl8761b_fw.bin not 
found

Turn on switch in settings/Bluetooth - icon remains grayed out
"Bluetooth Turned Off"

Reboot doesn't help.
Shutdown, remove power, restart doesn't help
Pull BT USB interface, reinstall/change port, doesn't help

The following procedure worked for me:

https://www.xmpow.com/pages/download
https://mpow.s3-us-west-1.amazonaws.com/20201202_mpow_BH456A_driver+for+Linux.7z

expand and cd into /20201202_LINUX_BT_DRIVER/rtkbt-firmware/lib/firmware

$ sudo cp rtl8761bu_fw /lib/firmware/rtl_bt/rtl8761b_fw.bin
$ sudo cp rtl8761bu_config /lib/firmware/rtl_bt/rtl8761b_config.bin
$ sudo rmmod btusb
$ sleep 1
$ sudo modprobe btusb

Following this, I was able to turn on BT and pair with devices.

-- 
You received this bug notification because you are a member of Desktop
Packages, which is subscribed to gnome-shell in Ubuntu.
https://bugs.launchpad.net/bugs/1738838

Title:
  Bluetooth icon shows "Off" and the only option given below it is "Turn
  Off"

Status in GNOME Bluetooth:
  Fix Released
Status in GNOME Shell:
  Expired
Status in gnome-bluetooth package in Ubuntu:
  Fix Released
Status in gnome-shell package in Ubuntu:
  Confirmed

Bug description:
  See video. I have installed bluetooth, blueman, bluez but it makes no
  difference to a broken interface to control bluetooth under Gnome
  17.10, as shown in the attached video.

  ProblemType: Bug
  DistroRelease: Ubuntu 17.10
  Package: bluetooth 5.46-0ubuntu3
  ProcVersionSignature: Ubuntu 4.13.0-19.22-generic 4.13.13
  Uname: Linux 4.13.0-19-generic x86_64
  ApportVersion: 2.20.7-0ubuntu3.6
  Architecture: amd64
  CurrentDesktop: ubuntu:GNOME
  Date: Sun Dec 17 22:32:30 2017
  EcryptfsInUse: Yes
  InstallationDate: Installed on 2017-11-18 (30 days ago)
  InstallationMedia: Ubuntu 17.10 "Artful Aardvark" - Release amd64 (20171018)
  InterestingModules: bnep btusb bluetooth
  MachineType: LENOVO 20BXCTO1WW
  PackageArchitecture: all
  ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-4.13.0-19-generic.efi.signed 
root=UUID=02bd5120-a925-442c-a0dd-1cce59920632 ro quiet splash 
psmouse.synaptics_intertouch=0 vt.handoff=7
  SourcePackage: bluez
  UpgradeStatus: No upgrade log present (probably fresh install)
  dmi.bios.date: 11/06/2015
  dmi.bios.vendor: LENOVO
  dmi.bios.version: JBET54WW (1.19 )
  dmi.board.asset.tag: Not Available
  dmi.board.name: 20BXCTO1WW
  dmi.board.vendor: LENOVO
  dmi.board.version: SDK0J40697 WIN
  dmi.chassis.asset.tag: No Asset Information
  dmi.chassis.type: 10
  dmi.chassis.vendor: LENOVO
  dmi.chassis.version: None
  dmi.modalias: 
dmi:bvnLENOVO:bvrJBET54WW(1.19):bd11/06/2015:svnLENOVO:pn20BXCTO1WW:pvrThinkPadT450s:rvnLENOVO:rn20BXCTO1WW:rvrSDK0J40697WIN:cvnLENOVO:ct10:cvrNone:
  dmi.product.family: ThinkPad T450s
  dmi.product.name: 20BXCTO1WW
  dmi.product.version: ThinkPad T450s
  dmi.sys.vendor: LENOVO
  hciconfig:

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