Apple Watch passcode not working

I upgraded my iPhone and watch to IOS 16.3 and watchOS 9.3, unpair and unpair, and turn on and off, but it seems nothing is working in relation to my watch passcode. Everything in the passcode area is greyed out except for the wrist detection. I was trying to add cards to the wallet, which requires a passcode, but when I go to the settings, I cannot do anything. Even when I take off the watch from my wrist and put it back on, it does not ask for the passcode. Please assist. Thanks