I have the same issue and our PNO says same thing that, he has configured correctly. I don't know how can i verify that he had done correctly and where it goes wrong.

Dear Paris, I am sure that watch is paired correctly because i am to able to provision the card to watch wallet. But when I click add button inside watch app wallet pay, it prompts me to unlock the watch first. I did unlock and provisioned successfully. But when I did another provisioning previous card is visible again. First I have checked my filtering logic and then found that remotesecureelement passes count returns zero. Is it ok if I provide you console logs from Mac? Or you need sysdiagnosis logs particularly?

Dear Paris, I have raised feedback assistant report with sysdiagnostic logs https://feedbackassistant.apple.com/feedback/14966835 . Please check and let me know if you need any other information. Thanks Praveen

I am also facing same problem. In ios 18.0.1 it is working fine. But 18.1 and above it is not working. Apple must take a look at this as soon as possible. It is easily reproducible. Initially I thought fix would come in 18.2 but no.

I am also facing same issue

The issue is still happening for me