What is the difference between Cloud Mute and Phone Mute?

Cloud Mute is to mute Alexa interactions. When the Cloud Mute is on, the device will NOT detect the wakeword (Alexa), and will not send user speech to the Alexa cloud for speech recognition.

Phone Mute is to prevent the local speaker’s voice from being sent to the remote party during active phone calls.  Therefore, when the Phone Mute is on during phone calls, there is no audio being sent from the local end (the BT110 end) to the remote party.