First, no, I don't exactly remember whether I once consciously experienced sensitizer gone really off. It does tend to become more bluish with the time if you do not add any dichromate, and I once filtered a rest of old sensitizer, added some dichromate, and as far as I remember it still printed well.
However, I would not consider Arches Watercolour a very good paper with New cyanotype. As far as I know, it has alkaline buffers, and I would first immerse the paper, before using it, in a 1-2% acid (acetic, citric, oxalic) for about 5 minutes or until the bubbles stop coming, wash the paper out in pure water, dry, use. Even then, I am not certain that this paper will work for this process.
Oh yes: does the coating stay yellow when dry or does the colour change to green?
What contrast are you trying to get/how much dichromate do you add? With too much the picture becomes grainy and, of course, very slow to print.
I seem to have noted that too much humidity in the air/paper is bad for New Cyanotype: blotches appear in the print-out.