Apple has since admitted that the bug exists and has promised to fix it in a future software update. Currently, iOS 14.7.1 is already being tested within Apple, so it could be fixed fairly quickly. Of course, you can still unlock your Apple Watch by simply entering the passcode. If you have forgotten your passcode, you will have to reset your Apple Watch. And if your Apple Watch is managed by a company, you will have to contact the administrator to unpair and delete the Apple Watch. After that, the device can be set up as a new Apple Watch.
iOS 14.7 may well be the last (medium) major update of iOS 14. iOS 14.7.1 is already showing up in website statistics, while there is no trace of iOS 14.8 yet. It gives the impression that Apple only releases minor bug fix updates from now on and has no major new features planned in the period up to iOS 15.
With the ‘Unlock with iPhone’ you can ensure that your Apple Watch is unlocked at the same time as your iPhone. This will remain so as long as you wear the Apple Watch on your wrist. It can be useful when you get up: if you put on your Apple Watch in the morning, you no longer have to enter a code because you actually automatically look at your iPhone once. You can find this feature in the Watch app on iPhone under the My Watch tab. Go to Access Code > Unlock with iPhone and turn on the switch. As long as you leave the Apple Watch on your wrist, it will remain unlocked.
Conversely, you can also do more with the Apple Watch itself. You have been able to unlock your Mac and make purchases with the Apple Watch for years.