Yeahnah…….
Doesn't work for me, unfortunately.
Apple Watch added OK as key (both from phone AWT app and from watch AWT app), all settings are as described, but no unlock without phone.
Series 4 Watch, AWT v1.3.11 (1349), 2022M3 RWD, v2023.38.6, iPhone 13 Pro, iOS 17.1.1
Dunno if my watch is just...