Hi APM210,
For help with Screen Time and communication limits, be sure to also check your iCloud Contact settings with the steps below found in the article here: Set up Screen Time for yourself on iPhone
"Set communication limits
In Screen Time, you can either allow or block communication—including incoming and outgoing phone calls, FaceTime calls, and messages—from certain contacts in iCloud, either at all times or during certain periods.
- If you haven’t already turned on Contacts in iCloud, go to Settings
> [your name] > iCloud, then turn on Contacts. - Go to Settings
> Screen Time, then turn on Screen Time if you haven’t already. - Tap Communication Limits, tap During Screen Time, then select one of the following for communication at all times (other than downtime):
- Contacts Only: To allow communication only with your contacts.
- Contacts & Groups with at Least One Contact: To allow one-on-one conversations only with people in your contacts and group conversations that include at least one person in your contacts.
- Everyone: To allow conversations with anyone, including unknown numbers.
4.Tap Back at the top left, then tap During Downtime.
5.The option you selected for During Screen Time is already set here. You can change this setting to Specific Contacts, then choose one of the following:
- Choose From My Contacts: To select contacts to allow communication with during Downtime.
- Add New Contact: To add a person to your contacts and allow communication with that person during downtime.
If someone who’s currently blocked by your Communication Limit settings tries to call you or send you a message, their communication won’t go through.
If you try to call or send a message to someone who’s currently blocked by your Communication Limit settings, their name or number appears in red in your list of recent calls or messages, and your communication won’t go through. You can communicate with them when the communication limit is changed. If the limit applies only to downtime, you receive a Time Limit message. You can resume communication with them when downtime is over.
To resume communication with contacts who are blocked by your Communication Limit settings, change the settings by following the steps above."
You can also check your Share Across Devices settings with the article here: Keep track of your screen time on iPhone
If the issue continues, test a normal restart of both your Apple Watch and paired iPhone and ensure both are fully updated.
Update your Apple Watch - Apple Support
Update your iPhone or iPad - Apple Support
Cheers.