Unable to unlock with Apple Watch

Just as another data point, I have had the same issue as RickyRed, repeatedly. Apple Watch will unlock my Mac consistently. Intermittently, 1Password will just stop prompting for watch unlocks, and the little watch icon will disappear from the app's unlock window. In settings, the "Touch ID" checkbox will be present, but grayed out. So far, RickyRed’s procedure has worked for me to restore watch functionality in 1Password. But this happens to me intermittently, not just the one time. M1 MacBook Pro, Apple Watch series 6, Watch OS 10.3.1, 1Password for Mac 8.10.28 (81028034)