A few months ago at CES 2022, Google announced that it was planning to introduce a feature that would allow

The source found on Google Play Services that the above Smart Unlock option is now called Nearby Unlock. He also showed in a short video how it will work:
As we can see, to use Nearby Unlock,you must first make sure that the watch itself is not blocked and that it is on your wrist. After that, you will need to bring the wearable device to the phone, and the smartphone will be unlocked. When the mobile device is unlocked, you will receive a notification on the smart watch, when clicked, the smartphone will be locked again.
Nearby Unlock is likely to debut with the Pixel Watch this fall. The option is only expected to be available on devices running Wear OS 3.