Downtime not working on my kids watch but it works on the phone

I have specified during downtime for my kid to be able to only communicate with certain contacts. My kid also has a cellular watch so that they do not take their phone to school. But they cannot contact anyone as it says its blocked during downtime. The phone works as expected but the watch does not. This was working fine up until a few days ago. Watch and phone are running the latest software and I tried resetting the watch to see if it would fix it. I don't know what else to try as the watch is now useless during downtime, when they should have the ability to contact certain contacts (Parents and siblings). Iphone 12 pro max and apple watch se 2nd gen.