Apple watch series 3 not unlocking my MacBook after update

[manowar]

Has anyone else had this problem?
The MacBook won't connect to the watch

 

[rgyiv]

On my MacBook, I had to toggle a couple of the options off and back on for it to start working again (clicking the lock at the bottom left of your screenshot, entering your password, and then toggle the settings). I'm on my PC right now at work so I can't look them up, but I believe one was the one that was unchecked in your screenshot, and then there was another one that was like "don't allow automatic sign on" or something like that....