made the trick for me too ... thanks for finding that workaround. Btw. for safety I added a
cp com.apple.ScreenContinuity.plist com.apple.ScreenContinuity.plist.copy
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for me enabling developer mode appeared - without having to run all the steps in the post above - on the watch after unpairing the watch, connecting iPhone by cable (not wireless) and seeing the watch appear.
Clicking on it gave me the "enable developer mode" message on the watch, which magically appeared in the watches' settings.
I assume the "wired" connection between Mac and iPhone made the trick.
The watch connected fine, but needed some patience to resolve a transport error listed on the watch screen in Xcode to be resolved, to get the final screen in xCode.
[Xcode 16 b3, iOS 18b3, watchOS 11b3 and MacOS 15b3 - Xcode 16b3]