This is still an issue on 10.0.2, but the behaviour is slightly different. When you construct a CLLocationManager object: initially the auth status is Always (as it says in the Settings app), but starting location updates results in a Denied error you immediately get a locationManagerDidChangeAuthorization callback, with authorizationStatus being Not Determined if you call requestWhenInUseAuthorization(), nothing happens and you still can't get location updates On 10.0.1, the only difference was that the locationManagerDidChangeAuthorization callback didn't occur until the watch app left the foreground. On 10.0.2, it appears to happen immediately.

I'm seeing this for my watch app on the released watchos 10 and XCode 15. The phone app is fine, and the watch app permissions look fine in the Settings app on the watch, but tracking doesn't work The last comment on this question https://developer.apple.com/forums/thread/736785?page=2 seems to be correct — if you reset permissions, either by restarting the simulator or for the real device, Reset Location & Privacy in phone settings, then it works, until the next reinstall when it will go wrong again.