Apple Watch mistakenly locked for 2 hours after being in pocket

"Can’t it tell the difference between being in a pocket and someone trying to enter bad passcodes?"

No and why would you assume such? In your pocket spurious bumps and nudges can be interpreted as taps on the numeric pad, especially if you put your hand in your pocket now and then.

You might consider turning your Watch off before you put it in your pocket. You can still check the time by pushing the digital crown (the wheel that spins).

Turn on and wake Apple Watch - Apple Support

No one here, including me, is an Apple employee or Apple contractor. We are just fellow users like yourself. Apple Support does not monitor these user-to-user forums. So no, I cannot fix this and you cannot claim everyone is having the issue.

I have had iPhones and Watches for many years and have never had anything like what you describe happen. Never.

There have been cases of what are known as ‘ghost clicks’ on devices due to software glitches that have been fixed by updates. Nothing like your claim though.