I had the same issue. I tried not setting a passcode on my watch (not a great option), toggling Developer Mode on my phone, restarting my watch, and disconnecting and reconnecting my phone to my MacBook. In the end, closing and opening Xcode fixed the issue for me. After that I added a passcode back to my watch. I don't know if anything other than closing and opening Xcode was necessary. Now if I could only stop the "Trust This Computer?" from popping up on my phone and "Could not back up the iPhone" from popping up on my MacBook every time I reconnect my phone...