Unlock with iPhone unavailable with series 5 Watch

I tried many things, including reconnecting the Watch, setting it up as new etc, but nothing helped. Then suddenly yesterday, with no apparent reason, the issue has automagically fixed itself... Cant figure out why, but at least it is working again.

Two updates:

1) after installing 6.0.1 last Friday the problem disappeared!

2) After enabling 'Unlock Mac with Apple Watch' on my Macbook this morning the problem on the Watch is back.... :(

Here is a screenshot of the Watch app not loading the Passcode menu:

Update: Talking to Apple support and they couldn't find what could cause this problem. They proposed to take back the watch and swap it for a new one. This morning I visited the Apple store in Amsterdam and got a fresh new S5 Watch. Unfortunately the problem is still there, nothing changed. I still can't figure out why the passcode menu was available earlier this week and why a day later it failed to load again. Am I really the only one with this issue?

It seems like I have found a solution for this issue, finally!!

I was searching for a solution for another problem I had with the universal clipboard not working anymore on my iPhone. The advice I found was to disable iCloud, remove all iCloud data and re-enable iCloud again on the iPhone. After this, universal clipboard indeed worked again, and as a collateral surprise the Unlock with iPhone function is working again and after 4 days it seems stable. Other problems I had (like searching for contacts crashing) are also gone. Looks like something was off in my iCloud data sitting on my iPhone, messing things up at various places. This was after the iOS 13 upgrade. Anyway, looks like its fixed now.

The problem is back, this is getting really weird now. Again, the Watch won't unlock and the Passcode menu in the app won't load. I am not aware of any change since yesterday. What is going on?