Steps don’t get registered in challenges. I have checked privacy settings and reinstalled app.
My son is having exactly this same issue. His watch is syncing with Connect IOS just fine, but all of his challenges are showing 0 steps with a note that "steps have not been sync'd", along with a button to "sync now", which does nothing when you tap on it. It makes no sense, I cannot figure out why it isn't working. I, too, have uninstalled Connect on his phone and reinstalled it, which made no difference.
Here's my thread I started a few days ago which has unfortunately not gotten any replies: https://forums.garmin.com/apps-software/mobile-apps-web/f/garmin-connect-mobile-ios/272755/group-steps-challenges-continuously-say-please-sync-your-watch-but-the-watch-is-sync-d