Lost Apple Watch

We were at the beach and when I got home I realized that my watch was not on my wrist. Find my watch app showed my watch still at the beach at the exact location where we were. I drive back to the beach but couldn’t find it…I suspected I may have lost it in the water.

I then activated the lost function and put a message with my number for whoever found it. The next morning find my iwatch said it was back at our address and said “today at 2:04am”. Since then it has continued to say it is at our address and it apparently updates location every morning around 2-3am but I cannot find it anywhere and it doesn’t connect to my phone.

I guess my question is why would it say it was left at the beach and then randomly switch to being at our house in the middle of the night?

[Re-Titled by Moderator]