Privacy sensitive label is not redacted when watchOS 10 is locked

I am not sure if is it watchOS 10 regression, but running my widget on Apple Watch I can see Label which is supposed to be rendered redacted when Apple Watch is not on my wrist. I use the .privacySensitive() modifier by it seems not to do anything. I can use the isLuminanceReduced environment in combination with .redacted(reason: .placeholder) which works when the wrist is not raised. But there's no environment AFAIK to know when the watch is locked.

BTW .redacted(reason: .privacy) don't do anything either, I have to use .placeholder.

Is anyone else having issues with privacy on Apple Watch when using the .accessoryRectangular widget family? Talking about regular widget, not the Smart Stack.

Post not yet marked as solved Up vote post of borisy Down vote post of borisy
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I experience the same. I think it is a bug because it used to be working fine prior to watchOS10. I have also tested a few of third party widgets and they have the same problem - not redacted when not worn. Only Apple's own widgets like calendar seems to be working just fine though.

The problem is relevant on version 10.1.1

Maybe it's time for Apple to fix it.