To eliminate any ambiguity or artifacts from my existing project, I verified this in but in the simplest case, using Xcode 15.2:
I created a simple project in Xcode: New Project, creating a watchOS app with a new companion iOS app.
I verified previews work for the ContentViews for both the watchOS and iOS targets.
Then File -> Add Package Dependencies... I added a package - in this case AWSiOSSDKV2 from https://github.com/aws-amplify/aws-sdk-ios-spm - and added it only to the iOS target. Verified it was added correctly in project settings, in the "Frameworks, Libraries, and Embedded Content" section for both iOS and watchOS targets
Previews no longer work for the watchOS target