This didn't work for me, and I had more of the files on item 7.
Please note that it won't work to access the files in item 9 with terminal you must use finder and show hidden files (cmd+shift+.)
I tried a number of times, as suggested by the author, but no luck.
Today 2 days later when I logged in on my computer I got a message (top right of screen) "Do you want to use your Apple Watch to log in on your computer (yes/no)" I agreed, the settings view where this setting is located appeared, I had to login and after that it worked.
Im on macOS 10.15.7 and watchOS 7.0.2 and iOS 14.0.1
For me those are the most recent version for all devices. I have tried to download new versions everyday since the unlock with Apple Watch broke in September. I have been in contact with support, who were very helpful as always, but they concluded after a while that this is a known issue and will be resolved soon.
I am not sure if the above suggested solution had anything to do with the unlock with watch beginning to work again.
It was neither directly related to software updates since the last ones were made a couple of days ago.
Anyways as far as Ive been able to tell nothing bad comes from following this guide.