I have had two support calls with Apple re:when and how notifications appear on watch. I wasn't getting notifications and did the reset everything (including my home wifi which makes no sense), twice. Erasing all data and apps on the watch, twice. Got one notification and first CSR proclaimed the issue resolved (nonsense), refused to escalate, we hung up, and watch stopped notifying 5 minutes later. if you make genius Apple Store appointment, they will reset phone, reset watch, and if they get a few successful notifications while they're using it for a minute or two, they will say it's resolved. If you're having the notification issue, it will not really be resolved, and notification will stop working shortly after the appointment.
After reading through all the comments on this issue I tried tightening the wrist band a bit and was pleasantly surprised to see notifications have improved. Not perfect, but better. Which I think in my humble opinion with some IT experience debugging, seems to now point to the infra red sensor's functionality.
Classic question - is it the infra red hardware, or is it an infra red software bug?
We won't know definitively until watch OS2 software upgrade this fall.
I don't need 200 daily email notifications - just text and my news apps would be fine.
SO...important to note as others have three most important variables must be met for notifications -
1. iPhone must be dark screen & LOCKED
2. Watch must be UNLOCKED
3. You must be WEARING the UNLOCKED watch (snugly enough) on your wrist so infra red sensor detects you're wearing the watch.
Apple will likely rethink and hopefully tweak above criteria causing quite a bit of confusion and way too many support calls. As watch OS2 purportedly has "horizontal" nightstand mode, it seems customers want functionality while NOT wearing the watch. It seems we ALL want watch notifications whether the phone is locked or not, or whether the watch is unlocked or not. Or at least let us CHOOSE the criteria ourselves.