I am FULLY convinced that this kind of detection is NOT accurate.
As a lot of other kind of measurement performed by Apple Watch (and the problem is not the Apple Watch itself, but the fact that it measures on the wrist, that it is not the best place for some measurement -like O2, temperature- or it is good but it is insufficient, in the sense that MORE sensor placed ALSO elsewhere are needed to gather full data, see EGC).
In this specific case of sleep tracking, the big problem is that it is based on accelerations (and heart rate), not by measurement of cerebral activity (the only thing that can tell you your REAL sleep phase). Me for e.g., sometime I had difficult to fall asleep but sometime will waiting sleep I stay motionless.
This is the reason because most 'health' related features are a complete ********. Instead of doing a real measure of you want measure, they measure ANOTHER thing, then they try to deduce what they want measure with machine learning.
Like for e.g. if I want to estimate how it is tall a person from a picture without having any reference size in this picture, but basing myself on suppositions about other objects in the picture. Yes, I could obtain a value that most of time is reasonable... but not real, only reasonable, and only some of the time.
Even the activity tracking is a ******** (BTW each ride with my electric scooter is recognised as a bicycle ride, and calories burned are are completely useless). Also drop detection sometime is triggered by a very fast arm movement (e.g. pound the table with fists because you are very angry

), even if you are sitting!
It would be interesting to place one sensor for each limb (maybe two), to have multiple accelerometers, multiple limb leads for ECG (and a real heart rate measurement, based on electric not on supposed color changes in blood). I could be an Apple Watch + multiple and lighter 'smart wristbands' on each limb connected to the Apple Watch.
In this case we could have real data and not simply ********. But it is too cumbersome for a consumer product, I dont see the interest to develop such product...so...smartwatches, for health related data, are simply toys.
(And I am an Apple Watch fan, I like a lot. But for another kind of usage)