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First I've ever noticed the second hand moving. I've always wondered why Apple don't use animated icons. I always thought it was because they couldn't. Now I know they can.

It has been animated the last two years. Nothing new, and not that impressive that both Watch and iPhone show the correct time.
 
It's not a second hand and it's not a bug. The seconds are shown on a little dial inside the watch face. The hand you're looking at is the stopwatch hand.

It took me a couple of days to figure this one out.
 
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