I had not had this issue until just last week. After deleting my phone from Sync, re-adding it, and still finding Privacy Mode activated by default, I continued playing with it and found a solution. The problem was not with Sync, but my Galaxy S3. I went into the Bluetooth connection settings. Saw the Paired Devices. I only had one such pair, SYNC. From there, I hit the cog button representing the settings for that connection. Once there, I saw the Profiles fields. There were two: one for Call Audio; and one for Media Audio. By placing a checkmark in the boxes next to each, the auto-Privacy Mode disappeared. It has worked perfectly ever since.
