Ok I solved Apple Watch not playing a sound to AirTags. I’m on watchOS 9.2 and iOS16.2
delete Find Items.
redownload Find Items.
restart Apple Watch.
play a sound on iPhone using Find Devices. It took a min to play a sound on my iPhone. Once it did go back to Find Items. Try playing a sound to AirTags
its like I forced the watch to talk to iPhone using Find Devices and it worked!!!