If all settings normal but behaviour is irrational there is a progressive hierarchy of remedies.
Hopefully you will not need to go to the end of the list!
Before venturing forth, make sure you are not using App Store VPN or VPN based adblockers or security apps on the iPhone. They can wreak havoc and protect nothing. (Check Settings, General, VPN & Device Management for profiles) Your employer corporate VPN should not cause problems but it might.
Start basic diagnostics by force restarting the Watch and paired iPhone at the same time:-
Force restart the Watch
i.e. press and hold both the side button and Digital Crown for at least 10 seconds, then release both buttons when you see the Apple logo.
Then while Watch is restarting, force Restart the paired iphone Force restart iPhone – Apple Support (UK)
Test it for a suitable period depending on the nature of the problem.
If it is still misbehaving...
Unpair and set up again, takes about 20 minutes.
Unpair and erase your Apple Watch – Apple Support (UK)
Set up your Apple Watch – Apple Support (UK)
If no remedy, unpair again and setup without restoring the backup. You will lose little except Faces and some settings.