Auto Unlock is meant to let a paired Apple Watch unlock a Mac without typing a password, but it can stop offering to after a macOS or watchOS update.
What are the first things to check when the feature goes quiet — Bluetooth and Wi-Fi state, the watch being unlocked and nearby, or the toggle in the Mac's password settings?
Does a macOS update typically reset this, and how should someone restore it afterwards?
Knowing whether it is usually an update-related bug or a settings and proximity issue would help decide where to start.