watchOS 7.6.1 now available with patch for known security exploit

Apple has released watchOS 7.6.1 with a security update that patches a known exploit that may have been actively used.

watchOS 7.6.1 patches a known security exploit
The new release patches an exploit that enabled apps to execute arbitrary code with kernel privileges. Apple says that it is aware of a report in which the issue could have been actively exploited.

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