Mac says unlock with Apple Watch requires your password. When Mac restarts
mac says Unlock with Apple Watch requires your password when Mac restarts.
MacBook, macOS 10.15
Question marked as
That is to enable unlocking your Mac with your Apple Watch, it's normal for it to do that on restart.
"The first time you log in after you've turned on, restarted or logged out of your Mac, you must log in by entering your password manually. After that, Apple Watch logs in for you."
Unlock your Mac with your Apple Watch – Apple Support (AU)