Watchtower defeats its own purpose.
I found that there is no way to exclude the passwords from the Watchtower. There will be some cases where I shouldn't need a strong password, doesn't matter if that password has been pwned, and for some accounts, I can only enter 4 digits numeric code. If the Watchtower doesn't allow me to exclude such kind of passwords and always shows some numbers next to vulnerable passwords, weak passwords. I wouldn't notice even if my password is compromised since it always shows some numbers.
1Password Version: 7.1.567
Extension Version: 1.8.1 (1Password X)
OS Version: Windows 10
Sync Type: 1Password default