Apple Watch Phone app Favorites missing contact names

I am using an Apple Watch Series 9 (watchOS 27.0 and on iPhone iOS 27.0). When I open the phone app on my Apple Watch, the names of my “Favorite Contacts” are missing. The favorites are displayed only as phone numbers.

All of my other contacts are displayed correctly, and the names also appear correctly in “Recent Calls”. The issue only affects the “Favorites” section.

I have already tried the following:

• Restarting both my iPhone and Apple Watch
• Unpairing and pairing the Apple Watch again
• Turning iCloud Contacts off and back on
• Resetting the sync data

Unfortunately, none of these steps have resolved the issue. Since contacts are displayed correctly everywhere else, I suspect this may be a bug specifically affecting Favorites on the Apple Watch.

Has anyone experienced the same issue or found a solution?