I've done some browsing and I haven't seen anyone else with this issue recently so I'm posting it here to see if anyone else knows how to fix it. I have an iPhone 7 Plus with 10.1 and a Apple watch series 2. When my watch is around other bluetooth items, it will constantly lock and prompt for password. Within seconds of unlocking it, it will lock again. For example, when I'm using bluetooth headphones, when I'm near my mac and using bluetooth headphones or when I'm in my car using bluetooth from the phone to the car I experience this issue. I had a series 0 apple watch and never had this problem. The watch is secure on my wrist. I've done the following to try and remedy the issue: -hard reset both devices -wiped and setup apple watch from backup -wiped again and setup as new apple watch -force quit apple watch app and reopened. I can't figure out if it is software or hardware and whether it is the watch or the phone because both are new.