I guess I was wrong on the SMS alerts. After posting the message I tried a different approach. Instead of re-selecting the same alert as I've been doing, I changed it to a different sound. Got a text this morning an was happy to hear the new sound. Changed it back to the sound I actually wanted and its working as expected. Not sure why this happened but glad its working now.
I also went back and checked on the Android Auto, to make sure I'm not wrong about needing Microphone permission. Music playback doesn't work without the Microphone permission.