Apple Watch unlock not working on mid 2017 iMac

1Password 8 says I have to enter the password before unlock with Apple Watch will work. I enter the password but then get the warning again each time.

I'm on Monterey public beta 5


1Password Version: 1Password for Mac 8.2.0-44.BETA
Extension Version: Not Provided
OS Version: Version 12.0 Beta (21A5304g)

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