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I have my apple watch set to unlock my mac and every time a password protected app wants me to enter a password, my apple watch ask me to double press the side button ( like this: https://eshop.macsales.com/blog/wp-content/uploads/2021/06/apple-watch-approve-requests.jpg ).
Is there a way to set this to AUTO APPROVE? seems like a extra unnecessary step to double press the watch side button!
Honestly, I think it's a good security measure. Consider the case that you've walked away briefly from your Mac but close enough for Apple Watch authentication and the automatic lock timeout hasn't happened yet. You wouldn't want somebody to sneak up to your computer and be automatically granted approval to open your passwords app (or other password-protected app).

Perhaps it's an unlikely scenario, but it is something that could happen. Making you acknowledge with a double-press of the side button on your watch is a good way to make sure that this doesn't happen.
 
Perhaps it's an unlikely scenario, but it is something that could happen.
I don't believe it's as unlikely as one might think. Consider sitting in a Starbucks and walking up to the counter, leaving your Mac at the table. The entire store (in most cases) puts you in Bluetooth range. Lots of places probably fall into the scenario you present which is why I think, as you pointed out, the minor inconvenience is worth the security it provides.

Now asking me when an app wants access to the camera on my Mac ONCE is a great idea, but asking again with ANY frequency... that's just a nuisance.
 
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