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The first post of this thread is a WikiPost and can be edited by anyone with the appropiate permissions. Your edits will be public.
Could it be that your Apple Watch isn't really unlocked? Many times I put on my watch and forget to unlock it or I canceled out of the unlock with iPhone without realizing. I use a 6-digit passcode on my iPhone and 4-digit on my watch and have not experienced this issue throughout the later iOS 17 betas and release version.

The only settings I can think of is to check your Apple Watch Settings->Notifications and toggle the Show Summary When Locked and Tap to Show Full Notification settings.

I checked that and I get the message on my iPhone that my watch is unlocked (by the phone). I can tap on items like weather and it brings it up and opens. Same with Rings and if I manually pull down and open items. This "Unlock Code" action only seems to occur when the notification alert is initially displayed on the watch face.

Has me stumped at the moment... I am tempted some weekend to take the time and reset both then manually setup from scratch.
 
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