Your Mac was unable to communicate with your Apple Watch

I have read all of the articles I have found online about turning on and off handoff, resetting everything, etc. None are helping me with this.

I have an iPhone XR that I just got brand new, and my new Apple Watch SE just arrived yesterday. Both are running 7.0.1. My MacBook Pro is running Catalina 10.15.7.

As I try to select my watch, it does nothing for a couple minutes then pops up "Your Mac was unable to communicate with your Apple Watch." My watch is unlocked and on my wrist, and my iPhone is unlocked. I am roughly 18 inches from my MacBook.