@MD_Gene
I've found WiFi up and running on the Mac to be my limiting factor. For example, if I just woke up my Mac, the WiFi may not have re-established a connection fast enough (check System Preferences -> Network -> WiFi interface -> Advanced -> WiFi (tab) -> Preferred networks. Make sure your home WiFi is at the top of the list, as the Mac will go through that list in order checking to see if it can join each WiFi network listed in order.
I also found that when I have my Mac connected via Ethernet, the Apple Watch unlock is much more reliable, as the WiFi is not busy trying to do other Mac related networking tasks.
Sometimes if I get the password request, I just hit the escape key, and let it go back to screen saver mode, wait a few seconds, then press a keyboard key again, and often the Mac will unlock this time.
Once in a dozen or so unlocks, it will want to verify I do know my password or that my finger print does unlock the Mac, but the rest of the time, it seems to work.
The fact that you can unlock 30% of the time means you are properly configured, it is now just a matter of making sure all the wireless bits are paying attention.