Apple Watch Mac Unlock Not Working

I have tried unpairing and pairing the Apple Watch a couple of times, I also updated the MacOS Catalina as they had an update released. Still having issues. One thing that ties to what I read about it not working when file vault is on, is when you go into users and select “Auto Login” it says it is off. Apparently that needs to be on to properly work but I can’t turn it on because it’s grayed out. Regardless, it looks the same for my MacBook and Auto Unlock with Apple Watch works fine. Next step is I ordered an adapter to not use the USB 3.0 ports and only USB C... we will see what happens.

I will try these things and report back. There are some notes online that seem to claim that FileVault is to blame but I am not about to turn that off and it seems odd considering my MacBook has that on and it works great. Thanks for all the tips.

I basically shut down my Mac mini, pulled everything out, and re-did my entire connection setup including using a USB-C to USB 3.0 adapter for the one USB 3.0 hub I had per the advice of RickB68. At first I was having the whole blank monitor restart issues with my Mac again (separate issue) and when I first logged in the Apple Watch unlock didn't work. BUT I turned off my watch, restarted my computer again, and then turned the watch back on, and turned the unlock back on. It works and the Apple Watch now unlocks my Mac mini again without issue. I will mention that the "Automatic Login" in the window above for login options still says "off" so I am not exactly sure what that is for, but as long as the Apple Watch is checked to unlock the Mac and allow access to admin changes it now works. I am going to chalk it up to the USB 3.0 issue. Super silly if that is honestly a thing. It seems to be a hardware issue.