Apple Watch unlock intermittently stops working

Have had ongoing issues unlocking 1PW with my Apple Watch Ultra. Toggling unlock with Apple Watch in Settings > Touch ID & Passwords resolves the problem immediately, but later in the day the request to enter my password to unlock 1PW resumes. No problem whatsoever unlocking my Mac with the Apple watch. I have tried all the workarounds I have seen (resetting Mac, resetting watch, resetting iPhone, etc.) to no avail. Open to a software update fix or other alternatives