Apple Watch Ultra 2 notification issue

I am experiencing my Apple Watch Ultra 2 watch to freeze randomly when I swipe down on the red dot to see notifications. It gets stuck for few seconds and then open the app list. It usually happens when I click on Clear All to get rid of all notifications after swiping down. I have tried restart, force restart and even unpairing the watch with iPhone but nothing helped. Paired phone is iPhone 15 Pro and there is the latest OS installed on both devices. Would anyone know how to fix this?

Thank you in advance