Finally found an answer in Bose forms.
I am finally able to hear the music. But i shouldnt have to go through so many steps to pair a headset with an audio player. It should be a breeze.
Glad i found the answer just in time. I was ready to return the mp3 player.
Here are the steps that finally worked for me as well. Credits to the poster named danger22
“Hey, I cracked the code (at least in my case). When you have the clip sport on, make sure the bluetooth is OFF and that the music is current paused (can tell by seeing the paused symbol in the top right corner of the screen). Now turn off the clip sport and make sure the Bose ear buds are in the case.
Now turn on the clip sport and pull out the buds (they should be blinking white lights). Don’t do anything until you see the blinking white lights turn BLUE, which means that now they are ready to pair again. On the clip sport (should still be in paused mode), go to the Bluetooth menu option and turn bluetooth ON. Once you see the Bose headphones show up, press the center button on them to connect. DO NOT do anything after pushing the button on them. After about 10-20 seconds, the screen will automatically go back to the music you were playing (music play screen w/ album art, etc.). Press PLAY (top button) and within 2-5 seconds, BOOM they finally work!!!”