Apple Watch unlock is not working in the beta/nightly version of 1Password for Mac

I am getting a somewhat similar behavior to this for the last few days, when trying to unlock the 1Password app with my Apple Watch. What happens is that 1Password tries to unlock with my Apple Watch, but instead of unlocking, another prompt to unlock using TouchID comes up.

After starting the 1Password app, I first get this prompt:

This makes my watch ask to unlock, and I acknowledge by double-tapping the side button. But instead of unlocking, 1Password gives me another prompt:

At this point it is not going to the watch and I must use Touch ID. Not really a huge inconvenience, but it's weird behavior.

Platform: Macbook Pro 2021
OS: macOS 15.0 Beta (24A5264n) - but it started happening about a week ago when still running macOS 14.x
WatchOS 10.5 (21T576)

1Password for Mac 8.10.36 (81036006)