Similar experience for me: After installing watchOS 10.1, would lose charge after about 3 hours. I took my watch to the Apple Store and an Apple Genius ran diagnostics and said the battery was okay, so it must be a software issue and that, since it just started malfunctioning, it must be something new and, therefore, easier to get rid of with a reset. Further, he said that, if this procedure did not work, it would require a more extensive investigation into the software, not detailing exactly what that would entail. He then proceeded to reset my Apple Watch Series 4 by first unpairing it, then resetting it, then re-pairing it to my iPhone 14 with iOS 17.1. Well, after all that, and after several days and more recharges, my Apple Watch can now go from 100% to 18% in FIVE hours instead of 3 hours, so maybe that's "progress"? And, at least I now know it is NOT a battery issue.
Other posts have suggested removing third-party apps, like watch faces, but I never had any of those, so I guess I'm going to try and revert the OS back to 10.0, which was working fine until I updated to 10.1.
I use my watch a lot, and for the $400+ it cost, it shouldn't be a mere piece of jewelry.
Btw, I had accidentally made a service appointment at Best Buy for this issue and, according the their Geek Squad "Apple guy," their policy is to replace the watch for battery and screen issues - at a cost of about $250 for a Series 4!