Quick Action - Double Pinch not working

I have an apple watch series 7 stainless steel. Quick actions is turned on (Assistive Touch not enabled).

When a notification pops up, I get the msg "Dismiss Double Pinch". When I double pinch nothing happens. If I turn the watch off and on its starts to work for a little while, but then stops shortly after. Has anyone experienced this same issue and know a fix? My phone and watch are both up-to-date. If I turn on Assistive Touch, I have the same issue.