Why is Carousel accessing location on Apple Watch SE?

Same here. I turned off location services to fix it her issues and a notification pops up on my watch “Turn on location to Allow “Carousel” to Determine your location.

I've checked both my iPhone and apple watch for this app but it can not be found.

Carousel is the name Apple gives to home screen on the Watch. Apple calls the home screen on iPhone Springboard. The home screen of the Watch may need location services for a complication or for the face itself.

Weedy1 wrote:

That’s just it… I don’t have an app for it but need location services on for my watch to sync with my phone.

That's completely unclear. Your original post suggested that there is an app that is using location services. If there is no app, how it using location services on your watch?

I suggest you contact the developer of the app/service for more information on how their product works.

What is "Carousel?"

You can control an app's access to location services through (on your phone) Settings>Privacy>Location><App Name>