watch keeps asking for password

I have discovered that I am to write the Apple ID password on the watch face with a finger or stylus. It appears that one can speak the password as well. The watch face initially wasn't giving me any hints on this. Just draw a line on it and the options finally show.

Anyway drawing in the password worked.

I've looked but do not see where I could sign out of the watch on the watch app. Can you direct me?

As far as using the General settings chapter, it gave me the ID but no place to apply the password.

Apple Watch Series 6 with an Apple phone X.