The app will no longer work on Apple Watches from January
Microsoft announced the imminent closure of the Microsoft Authenticator service for Apple smartwatches. This app is used to sign in to Microsoft accounts with 2-Step Verification enabled.
The Microsoft Authenticator app is available for watchOS in 2018. It supports personal, work, and school Microsoft accounts and lets you skip your iPhone altogether to complete the authentication process.
Microsoft has now updated the Microsoft Authenticator for iOS help page . To the question “Is Apple Watch supported for Authenticator on iOS?” Microsoft now gives the following answer:
The upcoming release of Authenticator in January 2023 for iOS will not include a watchOS companion app as it is incompatible with Authenticator’s security features. This means you won’t be able to install or use the Authenticator on your Apple Watch. Therefore, it is recommended to remove Authenticator from Apple Watch. This change only affects Apple Watch, so you’ll still be able to use Authenticator on other devices.