Activation Lock is designed to prevent anyone else from using an Apple Watch if it's ever lost or stolen.
About Activation Lock on your Apple Watch - Apple Support
Activation Lock is an anti-theft feature that cannot be bypassed. Only the previous owner can remove the lock by using their Apple ID & password. In the future, see:
What to do before you sell, give away, or trade in your Apple Watch, or buy one from someone else - Apple Support
Here are two ways your aunt can unpair the watch without using the paired iPhone:
- See the 'How to erase your Apple Watch if you don't have your iPhone' section of:
Unpair and erase your Apple Watch - Apple Support
- With a web browser, go to: https://www.iCloud.com and sign in with your Apple ID. Open Find My iPhone and select All Devices (at the top). Then click your Apple Watch, select 'Erase Apple Watch', and select Next until the device is erased. Finally click "X" next to remove your Apple Watch.