Apple Watch Stuck on Enter Passcode. Reset won’t work

One morning I woke up with a weird message on my Apple Watch. It said I had too many failed passcode attempts. That was weird since I was sleeping, and definitely not entering wrong passcodes.

I didn’t mind too much though, since the watch would unlock as soon as I unlocked my phone.

Up until this morning where it wouldn’t unlock. I attempted to reset it with the Apple Watch App but that failed and ended up just unpairing but leaving the watch on the „too many tries, reset“ screen.

Now I was unable to try it again using the app, since my watch is no longer listed there.

I attempted to reset the watch by holding the side button. It did nothing (no shutdown slider) until it eventually rebooted and went to the „enter passcode“ screen. However, my (correct) password would not work. Attempting to reset with the side button caused the same behavior as before.

I would really appreciate any help on this issue.