Hi Hickorytim,
Thank you for participating in the Apple Support Communities. We understand you're unable to use your Apple Watch keyboard to enter a new password. We recommend restarting your watch and making sure both your watch and iPhone are updated to the latest watchOS and iOS version. Updating and restarting can sometimes resolve issues like this.
This article has the steps for restarting: Restart your Apple Watch.
"How to restart your Apple Watch if you have watchOS 9
- If your Apple Watch is charging, take it off the charger.
- Press and hold the side button until you see the power button
in the upper-right corner of the display. - Tap the power button.
- Drag the Power Off slider.
- After your watch turns off, press and hold the side button again until you see the Apple logo.

How to restart your Apple Watch if you have watchOS 8 or earlier
- If your Apple Watch is charging, take it off the charger.
- Press and hold the side button until you see the Power Off slider.
- Drag the Power Off slider.
- After your watch turns off, press and hold the side button again until you see the Apple logo."
Here's how to update if needed: Update your Apple Watch.
If that doesn't help, try unpairing your watch and pair it again. This article has the steps: Unpair and erase your Apple Watch.
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- Keep your Apple Watch and iPhone close together as you unpair them.
- Open the Apple Watch app on your iPhone.
- Go to the My Watch tab and tap All Watches.
- Tap the info button
next to the watch that you want to unpair. - Tap Unpair Apple Watch.
- Tap Unpair [your Apple Watch name].
- For GPS + Cellular models, choose whether to keep or remove your cellular plan.
- If you want to pair your Apple Watch and iPhone again, keep your plan.
- If you don't want to pair your Apple Watch and iPhone again, remove your plan. If you aren't going to pair with a different watch or iPhone, you might need to contact your carrier to cancel your cellular subscription.
8. Type your Apple ID password to disable Activation Lock, then tap Unpair.
Before erasing all content and settings on your Apple Watch, your iPhone creates a new backup of your Apple Watch. You can use the backup to restore a new Apple Watch. After your Apple Watch unpairs, you'll see the Start Pairing message.
Now you can set up your Apple Watch again or turn it off if you're selling it or giving it away.
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We hope this helps.
Take care.