At this point you need to isolate the issue. If you have access to family member’s or friend’s iPhone try pairing your watch to their device and see if the issue remains. First follow the directions to the link below to fully reset and un-pair your watch from for your iPhone.
reset and disconnect Apple Watch:
https://support.apple.com/en-us/HT204568
Then connect your Apple Watch to their iPhone using the directions provide in the following link.
connect Apple Watch: https://support.apple.com/guide/watch/set-up-and-pair-your-apple-watch-with-iphone-apdde4d6f98e/watchos
If the issue remains then there is a good chance the watch has an issue and you should contact apple support:
https://support.apple.com/watch
If the issue is resolved then you probably may need to reset your iPhone and “set up as new”. Restoring the iPhone from backup may reintroduce the issue.
To summarize:
- test Watch with another iPhone connection and see if issue remains
- if Watch works properly on another iPhone connection (other than your own iPhone) then either investigate further with apple support or reset and erase your iPhone (set up as a new device while not restoring previous backups).
Please report back with your results and the resolution so others may benefit.
Note: prior to reset do perform a current backup in case you find it necessary to restore data. If you use the iCloud and it is currently syncing things like photos, messages, contacts, etc then that data should sync back to your iPhone when you sign into iCloud on setup of your phone. If you are uncertain about how to preserve and restore data then consult with apple support before wiping your iPhone.
More info about iCloud and syncing:
https://support.apple.com/guide/icloud/set-up-icloud-on-your-devices-mmfc0f1e2a/icloud