Watch series 2 question

What is exactly your question ?

Do you want to develop and be sure app will run on for AppleWatch series 2 ?

If so, just select the correct deployment target. It is independent of Xcode version (at least if Xcode more than 9)

All versions of Xcode support development on Watch Series 2. To build an app for watch series two, just ensure that you selected Apple Watch Series two deployment - the version of Xcode currently on the App Store (13.2 at time of writing) will work just fine for all devices.

That doesn't seem to be the case for my version of Xcode 13.2.1 it lists watchOS 7.0 as the oldest simulator to download. 6.3 is the last version supported by the Series 2 Apple Watch...

I'm wondering if this is a limitation to the new M1 machines? It was my newest M1 Mac book Air that shows Watch OS 7.0 as the oldest simulator to download ??? My 2017 iMac Pro shows 6.0 as the oldest Watch OS simulator?? This seems strange to me both Macs have Xcode 13.3 build 13E113??? Has anyone else seen this?