How to unpair Apple Watch from stolen iPhone?

You cannot unpair your watch because you need your phone to do so. But you can, however, erase your watch and pair it with a new phone, the steps to erase it are here: https://support.apple.com/guide/watch/erase-apple-watch-apd4ad3571d9/watchos, and the steps to set up your watch are here: https://support.apple.com/guide/watch/set-up-and-pair-your-apple-watch-with-iphone-apdde4d6f98e/watchos. Although your Apple Watch will still be paired with your original phone, it won't have access or control anymore to this watch, because you have paired it to a new phone.

kcAUfan Said:

"watch pairing: how to unpair watch from stolen phone"

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Modifying your Credentials:

If this was stollen, then immediately performing the following is best at this point.  So, Consider Modifying...

• Modifying: your login credentials (using both a New eMail and a New Password) for Apple and each and all sites
• Associating: a different method of payment to your account
• Enabling: Two-Factor Authentication for Apple ID and for all other accounts that have such an applicable option

kcAUfan Said:

"watch pairing: how to unpair watch from stolen phone"

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Remove the iPhone:

You would remove that iPhone from your Apple ID.

Go Here: View and remove your associated devices in iTunes - Apple Support