Thanks for the update.
As to why the Apple reps are confused or don't understand how the watch works, I always chalk it up to lack of experience with the specific device. Most of the reps I have had the opportunity to work with have enough trouble keeping up with the iPhone and the Mac flavors.
Also the watchs works two different ways: non-cellular and cellular. The non-cellular versions use the Apple Wi-Fi Calling on supported iCloud-connected devices.
The Cellular model's use true Carrier Wi-Fi Calling similar to the way iPhone's use Wi-Fi calling. I say similar because on the watch, you have to have the Cellular Toggle enabled in standby to power the eSIM to actually use Wi-Fi Calling. This is because the Carrier's network uses the SIM information to validate the connection. On the iPhone the SIM is always powered since it has battery to spare.
Dave
Update: I power cycled the phone and then the watch. Still unable to receive calls on WiFi with phone off. Went to a different Apple store tonight, talked to another employee and was told Watch would not text or make calls without the iPhone being on. I said that that I have done all except it won’t receive calls. Another employee was called over and said that only texting was possible on WiFi. So I connected my wife’s phone to the store WiFi and ran thru the tests with the phone on. Then I shut off Bluetooth and WiFi and lo and behold, the watch received a call from my phone! Now I shut off my wife’s phone completely and was able to do everything with the watch connected to the store WiFi! The employees were amazed.
What puzzled me was that I was not able to receive calls on my home WiFi. But then it hit me, I was now connected to a different network which was suggested in one of the guides that you posted earlier in the thread. My wife decided she wanted the same watch only with cellular, so we made the exchange. I was happy that everything finally worked a shift it was supposed to. I only wish I could have brought the original watch home to try on my home network.
Anyway, I came home and began setting up the new watch, but didn’t activate cellular. When on WiFi, it did show my home SSID. Maybe only cellular models do that? And the cellular watch made and received calls and texts with the iPhone off. She is going to try it at work without activating cellular and see what happens. Maybe there are some networks where it won’t work without the phone, at this point I don’t know. Regardless, the extra $70 for the cellular version is worth it for her satisfaction, even if it doesn’t get activated.
Thank you again, you were a big help.