MacBook Pro not unlocking with Apple Watch

My Apple Watch no longer unlocks my MacBook Pro. All are up to date with the latest releases: Apple Watch Series 5 watchOS 6.2.6, iPhone XS iOS 13.5.1, MacBook Pro (15-inch 2016) macOS Catalina 10.15.5 . Both my MacBook and iPhone have two-factor authentication turned on.

I have tried turning off and back on unlock with Apple Watch in the Security & Privacy in the System Preferences.

I tried turning off unlock with Apple Watch and restarting my MacBook and Apple Watch, then turning unlock with Apple Watch back on and unlocking my Apple Watch.

I have tried turning off unlock with Apple Watch and restarting my MacBook, iPhone, and Apple Watch, then turning on unlock with Apple Watch and unlocking my Apple Watch.

None of these possible solutions have worked.

I have found that when my Apple Watch is locked the login screen shows in addition to the "Touch ID or Enter Password" prompt "Apple Watch must be unlocked to unlock this Mac."

Hopefully I missed something in trying together my Apple Watch to unlock my MacBook.