"Always on Display" not working on the Apple Watch Series 5

I got my series 5 on release day and out of the box I was having this issue. I called Apple support and troubleshooted the issue with support over the phone for an hour or so with no solution found. By the end of the call it was recommended that I take the watch in for service, I opted to return the watch to Sprint for a replacement. Today I got my replacement in, and it seems that the "Always on" feature is somewhat working depending on where I position the watch on my wrist. I have dark tattoos on the area where I usually wear my watch. When I switched the watch to my right arm (which doesn't have tattoos in that area) and changed the orientation to my right wrist, it seems to work as designed. I've been experimenting with this for a few hours and it seems that if I intentionally place the sensor on the back of the watch on the tiny area of my left wrist (my tattooed wrist) that doesn't have ink on it and adjust the band tight enough, the feature seems to work. Tattoos seem to be effecting the sensor, thus effecting the "always on" feature.

This still occurs after updating to Watch OS 6.0.1 (the latest software)