Unlock with Apple Watch not working since upgrading to WatchOS 11.0.1

Upgraded my iPhone 16 Pro to 18.0.1 yesterday, and after that my Series 7 watch to 11.0.1.

Since then, I've been unable to use my watch to unlock any of my iMac or MacBook Pros. This was with the iMac and (personal) MBP on 15.0.0 and 15.0.1, and with my work MBP on 14.7.

Tried with rebooting everything, as well as going into System Preferences -> Touch ID & Password and toggling unlock with watch off and on again.

None of it has helped.

I'm wondering if anyone else is having this issue? (ie, problem with the update) Or if there's other things to try.