MacRumors published a story that Apple has released iOS and iPadOS 14.7.1 with fix for Touch ID Apple Watch bug

Apple Releases iOS and iPadOS 14.7.1 With Fix for Touch ID Apple Watch Bug

Apple today released iOS and iPadOS 14.7.1, minor bug fix updates that come just a week after the release of iOS 14.7, software that introduced new Apple Card features and support for the MagSafe Battery Pack. The iOS and iPadOS 14.7.1 updates can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. iOS 14.7.1 fixes a bug that could prevent Touch ID iPhones from unlocking an Apple Watch, an iOS 14.7 issue that Apple said it would fix in an upcoming software update. 

Apple Releases iOS and iPadOS 14.7.1 With Fix for Touch ID Apple Watch Bug