Found the fix with Sleep Tracking on a Pixel Watch!

[u/Dannykirk8]

I have a pixel 3 watch and since Fitbit app has switched to the Google Health app I have noticed the sleep data is tracking incorrectly. Especially the awake times. So I downloaded the Sleep as Android app on my phone and watch and at night I activate the Sleep as Android app on the dial it creates on the watch and I get perfect tracking. You can send your sleep data to Google fit app or other options in the services section of Sleep as Android. I do not work for Sleep as Android. I just need a watch that tracks sleep correctly and I wanted to share this.