Cannot unlcock Macbook M1 with Apple Watch

I am trying to activate "use your apple watch to unlock apps and your mac" and it does not respond.

I have Macbook Pro 16'' M1 and an Apple Watch Series 6 both updated on the latest version. Moreover, both are on the same network.

Another issue that I have is that Macbook cannot pair with my iPhone 11 via Bluetooth ( I don't know if this issue is related to the previous one)

Can anyone help?