Unread message notifications not clearing on Apple Watch

I’ve read a handful of threads from others dating back a few years reporting the same issue but I haven’t found a solution. I have a series 5 watch running watch os 7.2 and an iPhone 12 Pro on 14.3. If I receive any texts and view them on my phone my watch will still display a number and showing them as unread. They’ll only clear if I manually view them on the watch. Not sure if this is only happening with sms or iMessage as well.

Tried rebooting both devices, unpairing, resetting, etc with no resolution. Seems like this wasn’t an issue till I upgraded to watch os 7 and got the iPhone 12 Pro, both of which I did at the same time.