So I decided to check if my watch has been backed up to my phone, but when I look in Settings -> General -> iPhone storage -> Watch there is nothing under documents and data.
Does the backups disappear from there when backing up the iPhone encrypted to iTunes? Otherwise my watch isn't backing up for whatever reason. I hope that's not the case.

Does the backups disappear from there when backing up the iPhone encrypted to iTunes? Otherwise my watch isn't backing up for whatever reason. I hope that's not the case.