Either the person didn't fully remove it from their Apple ID before they sold it, or they weren't the actual owner of the watch and don't have the information to remove it from their Apple ID.
Usually, if the person legitimately forgot to remove it from their Apple ID you can get them to remove it from their account. If they refuse to answer you after you have purchased it was most likely a scam and unfortunately, you have purchased an expensive paperweight.
The point of this Activation Lock is to deter thieves from stealing the devices as they will be useless to them. It is doing what it is designed to do and there is no way around it other than getting the original owner that had it signed into their Apple ID to remove it from their account. Once it is removed from their account then you will be able to sign it into your account and be assured that as long as it is attached to your Apple ID at that point it will not be useable to anyone else until you remove it. If you can't get in touch with the original owner and have them remove it, then it is going to be useless.