Apple Watch not receiving text notifications when Unlock With iPhone is enabled

Just got a brand new Apple Watch yesterday. Didn’t have any issues setting it up except I was having a hard time getting text notifications to come to my watch (iMessage). What fixed the issue was turning off Wrist Detection as well as Unlock with iPhone. And when I try to turn the setting on, the text notifications stop.

I’m not too worried about wrist detection but typing in my passcode on the small watch screen can be annoying. Is there anyway to still receive text notifications with Unlock with iPhone enabled?