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Check settings on the watch
- do not disturb
- theater mode activated
On the phone watch app
- notifications —> phone: check to see if you are mirroring notifications on the phone or watch. If it’s selected to watch then verify the following ( see picture)
 

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my settings are the same as yours on the phone app side, mind I had to think twice to realise you were showing the screenshot with custom opened but after I'd opened it I saw it was exactly the same. Do Not Disturb is not on either the phone nor watch only silent mode on watch and that doesn't make a difference I know because I make calls with it regularly. Thanks for suggestions.
 
What's the status of your phone during these issues? On/off/ringing?
 
What's the status of your phone during these issues? On/off/ringing?
Standby, because I left it home but on saying that I just noticed it was on vibrate, so don't know if that had anything to do with it nor the other status cos it has cellular on it
 
Standby, because I left it home but on saying that I just noticed it was on vibrate, so don't know if that had anything to do with it nor the other status cos it has cellular on it
Your phones vibrate / ringer setting does not translate to the Apple Watch (although, I wish it did). So even if you had the iPhone on vibrate, your Apple Watch will still ring. Happens all the time to me.

Have you tried rebooting your Apple Watch? Did you have good coverage when the incoming call was made? Cellular on the Apple Watch while the iPhone is disconnected could be spotty (pending your carrier). The bands do not pick up as strong of a signal as an iPhone.
 
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