I do have the same case. and apple service center recommendation is to replace the screen and billed under customer. I think Apple should look on to this, it might be a hardware bug

same here. After updating to iOS 16 and WatchOS 9, there were no Apple Watch Mirror. Wonder if the feature is limited to specific Apple Watch models only? https://appleinsider.com/articles/22/07/11/hands-on-how-to-mirror-your-apple-watch-to-iphone-in-ios-16