Apple watch does not wake on wrist raise

I have been through all of the steps and settings for enabling wake on wrist raise. I have ensured theater mode is off and the other suggestions to turn off and restart the watch, re-pair the watch, and I even reset the watch using both a back-up and as a new watch. Still, wake on wrist raise does not work.

At this point, thinking it is a hardware problem. The watch is out of warranty. Any suggestions?