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Same problem here, iPhone 13 pro max, update to latest iOS 15. Set up as new.
 
Had this with my last new Mac. try these steps. You'll need a Mac signed into the same iCloud account.

1 Open "Keychain Access"


2 In "View", enable "Show Invisible Items"


3 Search for "Auto Unlock"


4 You should see a whole bunch of application passwords for "Auto Unlock: XXXX's ..."


5 Select all records and delete (this will reset/disable auto unlock on other Macs if you use multiple Macs)


6 Whilst still in "Keychain Access", search for "AutoUnlock" (no space)


7 There should be 4 entries for "tlk" "tlk-nonsync" "classA" "classC"


8 Select 4 records and delete (don't worry if they re-appear, the system repairs this automatically)


9 Open "Finder" and navigate to "~/Library/Sharing/AutoUnlock"


10There should be two files "ltk.plist" and "pairing-records.plist"


11 Delete both files


12 Open "System Preferences" and try enabling auto unlock. You may need to enable it twice, the first attempt will fail.

Worked for me then. Hope it helps you all out now.

P.
That solved a few issues. I deleted all of the watch in iCloud keychain, then when I went back into unlock in the watch app, the switch was now green.....I also deleted all of the iTunes connections in iCloud Keychain and now it is connecting to my iTunes (Mac Pro 5,1 running Mojave)
 
Same here— watch at 8, previous iPhone 11 was on iOS 15, direct transfer. Phone sees watch in Watch app and Bluetooth settings, just can’t re-enable mask.
 
Had this with my last new Mac. try these steps. You'll need a Mac signed into the same iCloud account.

1 Open "Keychain Access"


2 In "View", enable "Show Invisible Items"


3 Search for "Auto Unlock"


4 You should see a whole bunch of application passwords for "Auto Unlock: XXXX's ..."


5 Select all records and delete (this will reset/disable auto unlock on other Macs if you use multiple Macs)


6 Whilst still in "Keychain Access", search for "AutoUnlock" (no space)


7 There should be 4 entries for "tlk" "tlk-nonsync" "classA" "classC"


8 Select 4 records and delete (don't worry if they re-appear, the system repairs this automatically)


9 Open "Finder" and navigate to "~/Library/Sharing/AutoUnlock"


10There should be two files "ltk.plist" and "pairing-records.plist"


11 Delete both files


12 Open "System Preferences" and try enabling auto unlock. You may need to enable it twice, the first attempt will fail.

Worked for me then. Hope it helps you all out now.

P.
I'll give it a shot tomorrow. In some prior update this sort of fix worked (I think.. long ago!).
 
Going into iCloud Keychain and deleting all items for watch and iTunes solved a few issues. I deleted all of the watch in iCloud keychain, then when I went back into unlock in the watch app, the switch was now green.....I also deleted all of the iTunes connections in iCloud Keychain and now it is connecting to my iTunes (Mac Pro 5,1 running Mojave)


Edit...next day...still many issues.
 
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I’m fairly certain my watch is now bricked. I tried to do a factory reset to see if that would fix this issue. It got stuck on a reset screen so I reboot the watch. Now it fails to connect or pair.

Brilliant. Thanks, Apple
 


Several iPhone 13 users have taken to online forums and social media to report that after receiving their brand new iPhones, they're experiencing a bug preventing it from communicating with their Apple Watch, making what's supposed to be a seamless experience an annoyance.

iphone-13-apple-watch-bug.jpeg

As outlined on Reddit, after receiving an iPhone 13, some customers cannot toggle on the "Unlock with Apple Watch" feature, allowing users to unlock their iPhones while wearing a mask thanks to their Apple Watch. When attempting to activate the feature, some customers are prompted with an "Unable to communicate with Apple Watch" prompt, with no clear solution.

Posts and comments on Reddit suggest that typical problem-solving solutions aren't working, such as restarting both devices and even unpairing and repairing the Apple Watch to the iPhone. Posts on Twitter and Reddit indicate that the issue is widespread amongst new iPhone 13 users, but at least so far, we aren't seeing reports of other iPhone models being impacted.

The iPhone 13 initially shipped with an outdated build of iOS 15, so customers experiencing the bug should first ensure they're running the latest iOS 15 and watchOS 8 version. Still, even then, reports suggest that does little to amend the issues.

The new bug joins a growing list of bugs related to iOS 15 and the new iPhones, including a bug that may result in Apple Music being inoperative after a restore, a bug that may cause widgets to reset, and a bug impacting reported iPhone and iPad storage.

Apple is currently testing iOS and iPadOS 15.1, but given the growing number of issues experienced by users, the company may decide to release iOS 15.0.1 before its first significant dot update for iOS and iPadOS 15. We've reached out to Apple for comment on the bug, and we'll update this if we hear back.

Article Link: iPhone 13 Users Experiencing 'Unable to Communicate with Apple Watch' Bug With Mask Unlocking
I upgraded to iPhone 13 and it initially connected to my Apple Watch (running watchOS8) and now I'm getting the "Unable to Communicate with Apple Watch" error. Anyone else run into this?
 
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been having this problem. I’ve rebooted my watch and phone several times and also disabled “unlock with iPhone” from the watch passcode settings. Glad to know it’s not just me and hopefully we will have a fix soon
 
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I upgraded to iPhone 13 and it initially connected to my Apple Watch (running watchOS8) and now I'm getting the "Unable to Communicate with Apple Watch" error. Anyone else run into this?
Yes same thing. It initially connected then errored out and I had to force restart watch, but now it wont connect at all.
 
Same for me. iPhone 13 Pro Max. Can’t unlock the phone with the watch. Get the can not. Communicate message. Lasted iOS 15 version.
I have tried all the “fixes” that I can find no go.
 
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I played with stuff, signed out of iCloud, restarted, etc. Will now just wait for an update. I wish Apple would just issue a statement that admits there is a bug. Instead there will be a "performance improvements and tweaks" update with no reference to the issue. Oh well.
 
Bad enough  didn’t give us underscreen Touch ID and now the watch doesn’t unlock the iPhone. I’m not going to say what I’m thinking
 
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