Assistant delay or lag when music is playing

The assistant shows circles on the screen to acknowledge that the button is pressed for several seconds before changing to vertical lines to acknowledge that it is listening to commands.

If music is not playing the vertical lines appear instantly after pressing the button or microphone icon and the assistant is listening immediately.

I have tried different music apps, Youtube Music, Spotify, Podcasts etc, the issue is the same. If the Android Auto is playing music or audio there is a delay, if no music or audio is being played it is instant.

If the in-car radio is being used instead of Android Auto audio - no delay.

Both car infotainment system and phone have been factory reset to try and resolve the issue.

I first noticed this after update to Android 12.

Vehicle: 2017 Kia Optima
Phone: Xiaomi Redmi Note 10 Pro
Android Auto Version: 7.8.622514-release