Apple Watch WiFi
My watch shows that it’s on WiFi, but the features aren’t working when my phone is out of range, i.e sending/receiving texts, calls, dictation, etc.
Apple Watch Edition
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Are you using Wi-fi calling? For Messages, are you using iMessage or SMS? If this is a GPS only Watch, only certain features are available when the paired iPhone is out of range. See this, Use your Apple Watch without your iPhone nearby - Apple Support Make sure that you read the footnotes carefully.