Tried another short run. No Airplane mode this time. But I didn't do anything with the watch until I was a few hundred meters away and no where near wifi points that I've connected to in the past.
Did the run, and then a few hundred meters before reaching home I ended the run and took the watch off and walked the rest of the way. Watch was disconnected from wifi the entire run.
Somehow, the map still has a route, with relatively accurate starting and ending points.
Wanted to try another short run, but I was tight on time.
edit: looking at the route a bit blown up the way it posted, it looks like there's points along the way connected by straight lines. Also looks like it was bit more accurate than I thought with the start and end points. Not perfect, but somewhat close.
I'm going to take a wild guess that maybe, when I left home and it had no connectivity, that it started to track my movement somehow using accelerometer & gyro - similar to how it might be during the run?