No longer able to unlock my MacBook Pro with my watch
I recently upgraded from a Series 1 to a Series 4 watch and It will no longer will unlock my MacBook Pro. When I try to select the option to Use Your Apple Watch to Unlock Apps and Your Mac under security & privacy, I receive an error "You Mac was unable to communication with your watch - Make sure your Apple Watch is unlocked and on wrist, and your iPhone is unlocked." My watch and phone are unlocked when I try it. I'm using 2 Factor Authentication. I have reset each device, turned Blue Tooth off/on on each. Made sure my watch is listed in my iCloud account and is the only one. I'm on the latest software versions on MacBook, Phone (11), and watch OS. Any suggestions on what to try? It worked perfectly before when I had my Series 1.
Apple Watch Series 4, watchOS 7