Hello Fredsjunk,
On your iPhone when you go to Health > Body Measurements > Wrist Temperature, are you seeing this message? "Available After X More Nights” where “X” is the number of days. If so, your Apple Watch must be worn overnight consistently until this number reaches zero to begin measurements.
If not message is found, please continue below.
Check out the link below to check if Sleep Tracking is being performed.
Track your sleep on Apple Watch and use Sleep on iPhone - Apple Support
To perform the recommended troubleshooting steps via the link above, complete the steps in the section titled "View your sleep history."
Based on your iPhone usage at night, Sleep on iPhone tracks and charts your Time In Bed. To receive sleep data from Apple Watch, sleep tracking must be enabled for at least 4 hours each night.
To view your sleep history, open the Health app on your iPhone, tap Browse at bottom of the screen, then tap Sleep. If you have Sleep saved as a favorite, you can access it from the Summary page in the Health app.
The bar graph by default is set to D for daily. Tap W at the top of the chart to view your sleep history for the past week, M for the past month, or 6M for the past 6 months. Tap Show More Sleep Data and select a category to review additional sleep details.
*Stages: View the time and percentage you spent Awake or in REM, Core, or Deep sleep.
*Amounts: View your Sleep Duration details such as Average Time in Bed and Average Time Asleep.
*Comparisons: View your Heart Rate and Respiratory Rate in relation to your time spent asleep. If you have Apple Watch Series 8 or Apple Watch Ultra, you can also compare changes in your nightly wrist temperature data.
We recommend the steps above because they will show you how to track your Sleep on your Apple Watch and use Sleep on your iPhone.
As for your question regarding the front-facing sensor on your Apple Watch, we're unable to say explicitly without having more context about the conversation that took place at the Apple Store.
Please do not hesitate to contact us if you have questions or need any additional support.
Thanks for using the Apple Support Communities.
Cheers!