My wife and I a share an Apple ID and I have an Apple Watch. My wife just got a new Apple Watch. Do we have to have separate Apple IDs?
It seems that the new Apple Watch mirrors my present watch in Activities and Health apps
iPhone 7 Plus, iOS 15
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That is to be expected when you share an Apple ID. Apple ID's are meant for individual use so when multiple people use the same one data like contacts, photos, health, etc. can and will get mixed together.
It is best to continue with your own Apple ID's going forward. One of you'll keep the current one as your own. Other person signs out of the Apple ID for iTunes Store/Media Purchases and iCloud on all their devices and chooses the option to keep content on the device, if asked, then they will create their own Apple ID and sign into it and turn on their preferred iCloud options again.
Lastly, the original Apple ID will send a Family Share invite to the new ID. Set up Family Sharing - Apple Support