There’s one fix that has worked for me repeatedly, though the problem comes back eventually.
Let the watch’s battery drain absolutely completely. When it shut itself down press both side buttons to restart it repeatedly until nothing lights up on the watch face. Make sure the battery is as low as you can get it intentionally.
Then leave then the watch until the battery is absolutely flat. The first time I tried this I left it for 3 days but if the battery is already low enough just waiting overnight, 10 or 12 hours can work.
Then put it on the charger and restart, being careful not to go over 100% of battery charge level.
This resets some flag or other data that is missed during all other kinds of rebooting or resets. There is something that isn't being reinitialized that only can be by letting the Watch discharge completely.
When you reboot the watch never let it charge over 100%. Always stop charging the watch just before or at 100%. If it goes over 100% this problem comes back and you’ll have to do this procedure all over again.
This method has restored the usability of my Watch (series 4) several times now.