Watch OS 14 no longer unlocks MacBook Pro

I also ran into this and the Support person, after trying many workarounds, said that the engineers are aware of it and that I should look for an update in the coming days.

So no help, but at least they acknowledge that it's on them.

I have the same problem. But what irks me is that I spent 50 minutes on the phone to a support person and we went through numerous steps often repeated and much of which I had tried already. He was fairly adamant that this was “not a problem known to Apple”. I see from some reply that it is possibly a known problem they will try to fix. I won’t hold my breath...