I set the wake on raise in the on setting and in the general settings the always on button is on.
To view the screen I have to tap the phone or press the side button.
It sounds as if you have Theatre mode enabled. You turn it off in the Control Center. If you're using watchOS 9, swipe up from the bottom of the screen to access the Control Center. If you're using watchOS 10, push the button next to the digital crown. Tap the icon with the two masks on it.
Use Control Center on Apple Watch - Apple Support
My watch does not wake when I raise my wrist even though that setting is turned on.
