Apple Home Key Not Working on New Apple Watch Series 12 with Schlage Encode Plus

I recently upgraded from an Apple Watch Ultra 2 to an Apple Watch Series 12. Everything transferred successfully and is functioning normally except for the Apple Home Key for my Schlage Encode Plus smart lock.

The Home Key appears in Apple Wallet on the new watch with the correct name and information. When I hold the watch near the lock, the lock recognizes the watch and attempts to authenticate, but the watch displays "Try Again" and the door does not unlock.

Interestingly, the Home Key on my iPhone continues to work perfectly, and I can lock and unlock the Schlage using the Apple Home app directly on the new Apple Watch without any issues. The problem appears to be isolated specifically to NFC Home Key authentication on the new watch.

Troubleshooting steps already completed:

1. Verified that the Home Key is present in Apple Wallet on the new watch.
2. Disabled and re-enabled Express Mode for the Home Key multiple times.
3. Attempted to unlock the door both with Express Mode enabled and by manually opening Wallet and selecting the Home Key. Both methods fail with the same "Try Again" message.
4. Restarted both the Apple Watch and iPhone.
5. Restarted the Apple TV serving as my Apple Home hub.
6. Power-cycled the Schlage Encode Plus by removing and reinstalling its battery pack.
7. Confirmed that the old Apple Watch Ultra 2 was unpaired and removed from my Apple Account.
8. Completely unpaired and erased the new Apple Watch Series 12, then paired it again and restored it from backup. The Home Key was restored to Wallet, but the problem persists.
9. Confirmed again that the iPhone's Home Key works normally and that the Apple Home app on the watch can control the lock without issue.

At this point, everything involving the lock and Apple Home works correctly except for the NFC Home Key credential on the new Apple Watch.

I have intentionally avoided factory-resetting the Schlage Encode Plus or removing it from Apple Home because the lock is otherwise functioning perfectly, including with other devices.

Has anyone experienced this issue after upgrading to a new Apple Watch, particularly with the Schlage Encode Plus? Is there a way to force Apple Home to revoke and regenerate the Home Key credential specifically for the watch without removing and re-adding the entire lock?

Any suggestions would be greatly appreciated.