Verification Failed - An unknown error occurred

I just recently purchased the iPhone X and my Apple Watch 3 did an update the same day. Now, several times throughout the day my Apple Watch 3 pings with an alert that the Password Failed to enter it on the iPhone. When I open the iPhone it prompts me to enter the password to my iCloud. Every time I enter in the password I receive the pop-up that states Verification Failed - An unknown error occurred. However, I am able to log into my iCloud on my Mac, online, iPad all without a problem. After about 10-15 attempts the iCloud accepts my password and I am good for another 2-3 hours then the ping comes back on my watch and the cycle continues.

Has anyone experienced anything similar? What should I do?