Due to the new interface in Hue Essentials the settings screen was moved from the left menu to the bottom navigation bar. Open Hue Essentials on your phone, go to the Settings tab at the bottom, and enable the setting Huawei Watch.
Updated instructions: Where can I download Hue Essentials for Huawei watches?
If you are not able to see the Huawei Watch setting, please make sure you installed Hue Essentials on your phone from the Huawei AppGallery. Note that if you also have the Google Play version, the app will appear twice on your home screen. If the option is still missing, please share a screenshot of the settings screen.
Please let me know whether this resolves the issue.