apple watch prompt for id password

my watch is paired with my iPhone. I recently started receiving prompts on my phone to sign into apple. No idea why. I went online and changed the password then went ahead and signed in on the phone. All good. Now - 2 weeks later I am getting the same message on my watch - asking for apple id password - but the message is not appearing on my phone ( which is paired to the watch). The message can be canceled but it just re-appears. Should I go ahead and enter my apple id password on the watch ?

I did go ahead and activate 2 step verification as a security measure....