After the latest updates to my watch and iPhone my watch began locking every few minutes in spite of having Always On active. As a sort of desperate experiment I turned off unlock With iPhone, and that appears to have solved the problem. Just wondering if anyone else has encountered this issue.
Just to make sure, Always On is a Display setting. it does not unlock the watch.
Did you check, if Wrist Detection is still enabled on your watch in Settings/Passcode?
Lock or unlock Apple Watch - Apple Support
Unexpected locking usually means a loose or ill-fitting band.
Maybe a sensor problem.
Always On is not related to locking, as was mentioned.
Unpair, and re-pair, has been tried here, too?
Apple Watch continually locking after latest update
