In regard to unlock w/Apple Watch: - This is an issue of Apple's own artificial creation. - This doesn't even solve the issue. So this all started because Face Unlock didn't work with masks, that's not Apple's fault. But what is entirely Apple's fault is that they break an option which resolves this only when Face Unlock is enabled: "Require Passcode." When you disable Face Unlock you can set Require Passcode to e.g.…
Right you are, but for a different reason: Face masks entirely break Apple Pay. If you have an Apple Watch, lucky you, you can use the watch to pay instead. If you don’t? Well, tough luck.
Unlock with Watch apparently does not work with Apple Pay.
/e: Wasn’t aware of activating Pay using the code. Oops. :D