For anyone who encountered the same issue, can try with following steps: Install sysdiagnose profile on iPhone: https://download.developer.apple.com/iOS/watchOS_Logs/sysdiagnose_Logging_Instructions.pdf Trigger a sysdiagnose by pressing and holding both the Side and Digital Crown buttons on the Watch for two seconds and release, Watch will restart automatically Restart Xcode and hopefully it may recognise the Watch

Already tried all kinds of method, including restart device / reconnect bluetooth / reconnect WIFI / repairing watch / reinstalling Xcode, anything you can imagine, I have already tried!!