From 9th5mac.com:
Apple has once again acknowledged an ongoing “false touch” problem affecting Apple Watch users. Oftentimes referred to as “ghost touches,” this issue causes the Apple Watch to act as if the display is being tapped, even when it isn’t.
Apple first referenced this problem in a memo sent to Authorized Service Providers in February. At the time, Apple said it was aware of reports that “false touches” were affecting Apple Watch Series 9 and Apple Watch Ultra 2 users. In that memo, Apple told service providers to not replace any affected units and instead advise customers to wait for a software update as it investigated the issue.