This is how I end the shortcut flow. It works on mac, and the new note shows up on my Obsidian. But when I run the flow on my Apple watch, no file is saved. Not sure what I’m doing wrong.
The folder is my icloud/documents/obsidian vaults/vault/inbox
I had a similar issue with a couple of Shortcuts I recently wrote. The first time a Shortcut is run on a device one gets a message asking for permission to access the folder where the note is stored but watchOS doesn’t or can’t display that request window so, sadly, Shortcuts run on watchOS can’t write to a file. I spent a few hours on this thinking it was my code but searching around the web found a couple of posts with a similar problem.
It’s a long shot and a kludge but maybe write a simple Shortcut (running on watchOS) to trigger the Shortcut running on iOS. If you post a link to the Shortcut I’ll see what I can do. At least I can see if it’s the same issue.