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ANCS example fails with error NRF_ERROR_NO_MEM within nrf_sdh.c, SD_EVT_IRQHandler

I am using parts of the ANCS example code within a product near pre-production.  I am able to reproduce the problem in the ANCS example without modification.  Here are the specifics:

ANCS example fails with error "NRF_ERROR_NO_MEM" within nrf_sdh.c, "SD_EVT_IRQHandler".  The SDK is 15.3.0 and the SoftDevice is s132_nrf52_6.1.1_softdevice.hex.

This is easily reproduced with the following steps:

1) Have an iPhone with 30 or so text message notifications uncleared (text message icon shows red 30 number on icon);

2) Start ANCS;

3) Pair iPhone to Nordic Semiconductor ANCS example;

4) Turn Bluetooth off;

5) Turn Bluetooth on;

Upon reconnection this error will be reproduced.