Transfer of Apple Care
I just bought an Apple Watch, but want a different model. Can I transfer my 2 year Apple Care to a new watch?
Apple Watch SE, watchOS 9
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You may not. The article Skydiver linked concerns transfer to a new owner, not new device.
You'll have to cancel AppleCare+ for your Watch, which will refund you based on the amount of time you had it for (full refund if within 30 days), minus the value of any service provided. You can then buy it again for your new Watch.
Cancel or change the payment method for your AppleCare plan - Apple Support
