As one of the minority of users who still regularly syncs to my computer, I wish I was aware of this before updated to iOS 17. I was lulled into a false sense of safety after finding no apparent issues after auditioning iPadOS 17 for a week.
This is one of the reasons why I hopped off the update hamster wheel, and accepted the security risk of running older versions of software. I'd rather have something that just works, and works completely, with the chance of compromise, rather than proceeding with something that ends up breaking basic functionality like this, as part of a self-inflicted wound of sorts.
Killing the process that triggers the issue does allow the sync to progress, but doesn't extract the logs from the device. A kludge at best.
I did find that powering off my Watch does restore the functionality.
FFS, Apple. Machine syncs for users who also own Apple Watches is not exactly an edge case that should escape detection, especially given the all the flavors of OSes, and platforms, where it has been reported.