Apple watch stopped unlocking due to Chrome Remote Desktop's screen sharing
I think I found the culprit - Chrome Remote Desktop - but is there a way to fix it? Even though it's not actively running (i.e. a remote connection), I get this on the lock screen:
With the little binoculars in the top right:
When I uninstall Chrome Remote Desktop it will unlock again with the watch. I feel like perhaps I'm not doing something right because it didn't do this on Mojave.
Why is my screen being shared even when it's not active?
(Additional note: I also have Screens Connect actively running without issue -> I can still unlock the mac with the watch, and the binoculars do not appear on the lock screen. It's definitely something going on with Chrome Remote Desktop)
Sorry for posting a comment as an answer to the main question, but unfortunately it appears I do not have enough reputation to leave a comment.
Anyway, I just wanted to point out that there was indeed an update on Chrome RD side: to be sure, I checked current version (80.0.3987) of /Library/PrivilegedHelperTools/ChromeRemoteDesktopHost.app and went into Time Machine to compare with the version I had before a couple of days ago (78.0.3904).
Also, I remember that a few days ago that I was asked to enable some Privacy settings in the Preference Pane when the update passed -- and I did so as instructed by some Google-looking GUI that appeared at start-up. I think they were 'Accessibility' and 'Screen recording'.
Since the update, I too have been experiencing the very same symptoms: that is, unlocking with Apple Watch stopped working.
HTH
Sergio