During my testing I did wrap mine with plastic sheeth covered with aluminum tape and that alleviated any dropouts at all, but it happened never during my normal diving so I never planned to keep it.I'm in sidemount, and the cable was wrapping behind my back under my wing. I noticed occasional transmitter drop outs, and they kept happening at one of my favorite training holes at around 100-120ft. Got spooked not being able to access the transmitters and having to rely on the backup button gages.
I wrapped the cable with the braided cover, and also went ahead and replaced the transmitter batteries even though there was no warning that they were getting low.
I'm not sure if the batteries were the fix, or the cord wrap. But so far I've never had that issue since. Even if the cord wrap isn't helping with the transmitter connection issue, it at least adds a pop of color, helps to differentiate the cord by texture and color, and also provides a layer of friction protection. Figured it wouldn't hurt to just toss it on, so far so good!
I dive doubles vs your SM, so I'm sure that makes a bit of difference. Also I'm not sure if the 2.0 was upgraded to have less interference.
I've always dive under the thought that I should have a pretty good idea what my gas is and the spg / transmitter is just a sanity check. I'm getting better, but wouldn't want to be without either.
Any pictures of your wrap job? I like the idea of some flash even if just for aesthetics!