Buggy touch screen on Apple Watch Series 10 with watchOS 26.0.2

We updated to Watch OS26.0.2 last night and afterwards, the touchscreen of the watch is behaving very strange. For starters, blocks or buttons on screen now have a white border when you click on them. Second, the only way to "press" a button is by first selecting it so it gets a white border, and then double tapping it. Swiping seems to be out of the question.

We restarted the watch twice now and it doesn't seem to fix that. It feels like there is some accessibility setting that's on but shouldn't be.

[Re-Titled by Moderator]

Original Title: Buggy touchscreen on Watch10 with OS26.0.2