If all settings normal but behaviour is irrational there is a progressive hierarchy of remedies.
Hopefully you will not need to go to the end of the list!
First make sure you are not using VPN or VPN adblockers or security apps on the iPhone. They can wreak havoc and protect nothing.
Start by force restarting the Watch and paired iPhone at the same time:-
Force restart the Watch
i.e. press and hold both the side button and Digital Crown for at least 10 seconds, then release both buttons when you see the Apple logo.
Then while Watch is restarting, force Restart the paired iphone Force restart iPhone – Apple Support (UK)
You may also want to make sure the software on the watch and iphone are both up to date to the same level. Updates are in pairs. eg iOS16.6 and watchOS 9.6 go together
Update your iPhone or iPad - Apple Support first then
Update your Apple Watch - Apple Support
Test it for a while. If it is still misbehaving...
Unpair and set up again, takes about 20 minutes.
Unpair and erase your Apple Watch – Apple Support (UK)
Set up your Apple Watch – Apple Support (UK)
If no remedy, unpair and setup without restoring the backup. You will lose little.
If you've completed that troubleshooting and the issue is still not resolved, Contact Support.
Click here > Contact - Official Apple Support
or phone numbers
Click here > Contact Apple for support and service - Apple Support
and or Genius Bar Reservation and Apple Support Options - Apple