Unlock with Apple Watch not visible on MacBook Pro

Until the last couple of days my Apple Watch was able to unlock my MacBook Pro. It no longer unlocks my MacBook and when I look in Security & Privacy the option to check Unlock With Apple Watch no longer exists in the General tab.

Screen sharing is turned off.

Two-Factor Authentication is turned on.

My watch has a passcode.

Wifi is on - MacBook, iPhone and Watch

Same Apple ID is used on all 3 devices

MacBook Pro 15" w/Retina, mid-2014 running Mojave v. 10.14.2

iPhone 7 running iOS 12.1.3

Apple Watch 4 running 5.1.3

iPhone was updated a few days ago and the watch over a week ago. I was able to unlock my MacBook after the Watch update.

Mike