Thank you. At least I know where this is coming from. I have to say my experience with Feedback assistant is: I have reported a dozen issues over a year. In response I got about 6 requests for a sysdiagnose and then never heard back. Not a single of these feedbacks resulted in a solution...

Thanks for the solution. Turning on BT was the first step I needed to take indeed... but there are more issues, in particular if the mac is on Ethernet and the watch on WiFi but another VLAN. I documented this on my blog: https://www.fplanque.com/tech/dev/apple-watch-xcode-connection/