Using iOS 16.0 on iPhone 13 Pro and WatchOS 9.0.2 on Apple Watch 7 Xcode 14.0.1 I was having similar issue waiting for first unlock. Developer mode enabled on both phone and watch. Tried all the recommendations to no avail. Finally disabled and then enabled developer mode on the phone (which required a phone re-boot). I was then able to test on the watch (waiting for first unlock warning disappeared)

If you are still looking, please feel free to email me at ebender@stanford.edu I can give you my credentials via email rather than on this forum.

I also confirm that downloading and installing Xcode_12.xip from the developer website corrects the problem with crashing Xcode when trying to open developer documentation.