How to Watch Props Change with Vue Composition API / Vue 3?

While Vue Composition API RFC Reference site has many advanced use scenarios with the watch module, there is no examples on how to watch component props?

Neither is it mentioned in Vue Composition API RFC's main page or vuejs/composition-api in Github.

I've created a Codesandbox to elaborate this issue.

<template>
  <div id="app">
    <img width="25%" src="./assets/logo.png">
    <br>
    <p>Prop watch demo with select input using v-model:</p>
    <PropWatchDemo :selected="testValue"/>
  </div>
</template>

<script>
import { createComponent, onMounted, ref } from "@vue/composition-api";
import PropWatchDemo from "./components/PropWatchDemo.vue";

export default createComponent({
  name: "App",
  components: {
    PropWatchDemo
  },
  setup: (props, context) => {
    const testValue = ref("initial");

    onMounted(() => {
      setTimeout(() => {
        console.log("Changing input prop value after 3s delay");
        testValue.value = "changed";
        // This value change does not trigger watchers?
      }, 3000);
    });

    return {
      testValue
    };
  }
});
</script>

<template>
  <select v-model="selected">
    <option value="null">null value</option>
    <option value>Empty value</option>
  </select>
</template>

<script>
import { createComponent, watch } from "@vue/composition-api";

export default createComponent({
  name: "MyInput",
  props: {
    selected: {
      type: [String, Number],
      required: true
    }
  },
  setup(props) {
    console.log("Setup props:", props);

    watch((first, second) => {
      console.log("Watch function called with args:", first, second);
      // First arg function registerCleanup, second is undefined
    });

    // watch(props, (first, second) => {
    //   console.log("Watch props function called with args:", first, second);
    //   // Logs error:
    //   // Failed watching path: "[object Object]" Watcher only accepts simple
    //   // dot-delimited paths. For full control, use a function instead.
    // })

    watch(props.selected, (first, second) => {
      console.log(
        "Watch props.selected function called with args:",
        first,
        second
      );
      // Both props are undefined so its just a bare callback func to be run
    });

    return {};
  }
});
</script>