Time Sensitive Notifications not coming through Focus Mode when Apple Watch is connected

Since the Update to watchOS 11, the "Do not Disturb" focus mode that I have on basically all day does not let through notifications that my iPhone marks as "Time-Sensitive". Only when not wearing or charging my Apple Watch, I get notified on my iPhone if its time sensitive and otherwise not.

After speaking to the Support and resetting not only the "Location and Privacy", the "Network" and all other Settings, the issue remains.

Anyone else experiencing this? Both devices are running the latest version of iOS and watchOS respectively and have been restarted multiple times. Maybe its watchOS 11, but before everything worked fine.

Thanks in advance for any help!