I believe so. I had my phone with me as well running strava during the ride.Workout app calculates speed and distance from your step/stride length doesn't it? Gps just calibrates it?
After 5 minutes on hold whilst the Apple rep spoke to an "expert" the best they came up with was to unpair, then pair my watch again with my iPhone . I didn't do this but did try using the Workout app again on my bike, and this time it workedLet us know what they say please.
It worked for me, with all sorts running.
Preloaded strava on my phone and loaded up co-rider for navigation
Set workout for outdoor cycle open distance and started strava on the watch via glances and left this as my watch screen during ride.
Watch and Strava calculated same distance travelled, calorie discrepancy between the 2 apps was about 200 calories over 40 miles so not bad, workout used the watch HRM strava used its own algorithm without sensors.