Apple Watch no longer works at login

[OtterCreek]

When I "wake up" my computer, I get a message from DisplayLink saying that AppleWatch cannot wake up my computer "while my screen is being observed." This message is new. For about a year, the message never popped up.

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Using DisplayLink with two screens with
Apple M4
OS Tahoe 26.5.1 (25F80)

[Szymon]

Hello,

This is unexpected. Would you follow this FAQ https://support.displaylink.com/knowledgebase/articles/755301-how-to-report-macos-issues-to-displaylink
and submit a support request?

Thanks,
Szymon

[stacecom]

I'm seeing similar behavior. I submitted a ticket using the instructions above. Previously, I solved this by installing the most recent software, but that's still what I'm running (16.1)

[Szymon]

Hello,

Does your Mac unlock with your Watch when disconnected from the DisplayLink product?

Did you ensure to follow this instructions from Apple support?
https://support.apple.com/en-us/102442

Regards,
Szymon

[NateB6786]

Im having the same issue. No new displays/devices and no other changes that I can think of. The feature worked perfectly no more than a week ago. Any solutions?