Precision finding on my an iPhone 15 Pro Max and Apple Watch Ultra 2 does not work as expected

I have an iPhone 15 Pro and a Watch Ultra 2, pinging the iphone from the watch is just beeping the iphone and no longer showing the direction and distance.

The direction and distance info used to appear normally, since a while ago it stopped showing up and just the sound on the iphone works. I tried restarting and updating both to up to date versions, but still in the same behavior.

The watch screens shows: "Can't find iPhone? Searching for Signal. Try moving to a different location."

With the small phone icon below to ring again.

How can I fix it?