Hi there makulak,
Got to, thanks for those additional details. If you haven't already, you can see if restarting your Apple Watch may help is show the location like it should. Restarting can seem like a simple step, but it can sometimes help resolve unexpected issues by refreshing the software:
"How to restart your Apple Watch if you have watchOS 9
- If your Apple Watch is charging, take it off the charger.
- Press and hold the side button until you see the power button
in the upper-right corner of the display. - Tap the power button.
- Drag the Power Off slider.
- After your watch turns off, press and hold the side button again until you see the Apple logo."
Those steps are from this article: Restart your Apple Watch - Apple Support If needed, the article has steps for an Apple Watch running watchOS 8 or earlier.
Also, let's ensure that your Apple Watch is fully up-to-date, as that can sometimes help resolve unexpected issues. If needed the article below shows how:
"Get ready to update
Next, check these things:
- Make sure that your iPhone is updated to the latest version of iOS.
- Make sure that your Apple Watch is at least 50 percent charged.
- Make sure that your iPhone is connected to Wi-Fi.
Keep your iPhone near your Apple Watch throughout the update. It could take from several minutes to an hour for the update to complete, so you might want to update overnight or wait until you have time.
Update directly on your Apple Watch
If your Apple Watch has watchOS 6 or later, you can install updates without your iPhone:
- Make sure that your watch is connected to Wi-Fi.
- On your watch, open the Settings app.
- Tap General > Software Update.
- Tap Install if a software update is available, then follow the onscreen instructions.
Leave your Apple Watch on its charger while the update completes, and don't restart your Apple Watch. When the update completes, your Apple Watch restarts on its own."
Those steps are from this article: Update your Apple Watch - Apple Support That article also has a section that shows how to update watchOS via your iPhone, if you prefer that method instead.
Let us know if those steps helped or if you've already tried those steps.
Take care!