Apple Watch ultra passcode wrist detection not working

I noticed Apple wallet is not allowing me to ad credit cards to AW Ultra wallet. I get message passcode needs to be set. I have passcode set and wrist detection on. When I remove AW from wrist a set on counter top and reapply watch I am not required to enter passcode. In addition the only toggle on watch or in watch app on iPhone that I can use under passcode screen is wrist detection all other toggles are grayed out. Finally I have wiped and reset AW Ultra 3-4 times. I have restored from back up and I have set up as new watch. At set up I have set up 4 digit passcode. I have tried turning off blue tooth removing from wrist and applying. This is my 3rd Apple Watch. I have never had issues with watches before. Also I bought Watch from Apple in January 2023. Wallet worked then as did detection. I believe it is Watch Os issue with last upgrade. Please help I use watch for everything.