On M1 Mac Mini, and it's looking for my Apple Watch, which is currently charging. I think it should have the option to enter my password or PIN instead, as I can't access Enpass at all.
2016 MacBook Pro gives me the pop-up to use passwords instead, but then gets stuck on the "Unlock using your Apple Watch" prompt.
WORKAROUND: Quit and reopen; it then asks for the master password.