It looks the latest update to Google Remote Desktop is causing Apple Watch unlock to fail with error message: "Unlocking With Apple Watch is Not Allowed When Your Screen is Being Shared".
Apparently, Google Remote Desktop is requesting access to Privacy's Screen Recording entitlement and leaving constant activity on this permission. This is causing the system to refuse Apple Watch unlock.
This has been reported to Google, but I imagine that their user feedback likely goes into a black hole.
