I had the same issue. I reinstalled xcode, turned developer mode off and then on in the iphone, created a fresh xcode project, and the issue was solved. I was able to see the apple watch again in the xcode, which was not the case before, after i manually unpaired it.
Btw some remaining xcode files i also deleted per Chatgpt
Delete
~/Library/Developer/Xcode
~/Library/Preferences/com.apple.dt.Xcode.plist
~/Library/Caches/com.apple.dt.Xcode
~/Library/Developer/CoreSimulator/Devices
Topic:
Developer Tools & Services
SubTopic:
General
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