Apple Watch series 8 - it's on charge but is displaying the wrong time, I don't know what's going on

What is the error? Exact hours would suggest wrong time zone.

(Should mirror your iPhone, Check what time zone is in (iPhone) Settings/General/Date & Time)

The photo shows the Bedside/Charging screen. Does the problem persist in normal mode?

Check software version and updates for both iPhone and Apple Watch.