iPhone not unlocking Apple Watch post-update, work apps

iphone not unlocking my apple watch - due to work apps - only started after last update - my iphone has a complicated 12 digit password due to these apps. My apple watch only has 4 digit. I'm getting 'Device Locked First put on apple watch then unlock your iphone' - - but it doesn't unlock - I've done a FULL reset. that didn't work. I miss my watch working fully.