THANK YOU. You're quite right. I was looking at the APP settings / permission settings on the phone, not the settings IN the app. Dur! Thanks for fixing that! Also... now noticing all of these other dandy settings...! You're making me look up "scrobble".
I am having the same problem, but I don't have "headset/bluetooth" settings under Poweramp settings - There are privacy settings, Defaults, Usage stats...none of these include Headset. It is the latest version. It is activated with the unlocker.