Same issue here until clicked the "Send invitation to all testers" link.The problem is, why the public link only activated after send to all my internal testers?
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The same issue persists; a reboot of the iPhone can resolve it. However, requiring an iPhone reboot when installing and using Watch-Only apps on the watch creates a very poor user experience. It doesn't make sense to the users. I have posted a more detailed case here: https://developer.apple.com/forums/thread/749431