ESPHome and ESP32 to extend Bluetooth range of USB Dongle in HA?

We don’t know as the feature to use esp32 devices as remote BT receivers has not been released.

The best source I know is the 2022.08 release party video as the main developer, bdraco (J. Nick Koston) discusses he has just this range issue and needs a remote repeater.

EDIT: 2022.09 announced ESPHome Bluetooth proxies

One again, I’d suggest watching the release video for lots of detail and demos of ESP32 acting as remote Bluetooth receivers.

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