"Hand washing" entry missing in iPhone

There is no "Hand washing" entry in Settings > Privacy > Location on my iPhone. On my Apple Watch, in Settings > Privacy > Location is an entry for hand washing, but it is set to "Ask next time" (or something like that). For hand washing reminders to work, the hand washing app needs location access to be set to "Always" and "Precise". Unfortunately I can't change these settings on the watch and on the iPhone the whole entry is missing.

I tried resetting privacy and location settings on the iPhone and resetting the the whole Apple Watch (unpair, delete Apple Watch app, reset privacy and location settings again, install Apple Watch app, pair). Nothing helped.

When I turned on the feature upon my watch it asks me for location permission.. I choose WHEN USING APP (Alwasy wasnt available).. so I wanted to toggle it to ALWAYS in the iPhone Settings, but this entry isnt there.. So I cannot change the settings.. Tried resetting iPhone (and AppleWatch), but nothing helped..

I previously had an AppleWatch Series 3 and now added an AppleWatch Series 7... maybe the phone is buggy because of that?

Would love to get it fixed