My Apple Watch when calling iphone is prompted with "please enter password"
Both have separate esims using same Apple ID on AT&T network. Watch is SE and Iphone 15. Both have latest updates.
Apple Watch SE, watchOS 10
Question marked as
If the phone has the best cellular connection and is near your Apple Watch, the Watch will attempt to place the call through the iPhone which must be unlocked. Try unlocking the iPhone and then see if you can place a call. Or move farther away from the iPhone so that the Watch uses its own connection.
Some additional information that may be helpful can be found here:
Set up and use cellular service on Apple Watch - Apple Support
Regards.