I've been using 1Password for years, unlocking with Apple Watch, largely without issue. There was one occasion when I needed to disable and renable Apple Watch unlock in Mac System settings, but in the years I've been using it, it's mostly not been an issue.

Then a couple of months ago it just stopped working. A couple of weeks later I replaced my Watch Series 7 with an Ultra 2, so a completely new device replacing the old one. And it's still the same. I can no longer unlock 1Password with my watch. I've even tried removing and re-adding, but same story. The Watch works just fine for unlocking my Mac, or making Apple Pay Purchases on my Mac, but it will not unlock 1Password. I get a dialog telling me that it is awaiting a response from my watch, but I don't get any notification on my Watch and have to choose to use Account password instead on Mac.

Rebooting doesn't work. Removing and re-adding watch doesn't work. Assistive Touch is NOT enabled.

1Password Version: 8.10.3
Extension Version: Not Provided
OS Version: 14.4.1
Browser: App, Chrome, Vivaldi, Safari