Bring up the power off screen, choose the factory reset option and the place the Apple Watch on charging; this would remove all the previous data including the passcode settings making the device as good as new (Posted on Thursday, YouTube). Thus, the Apple-centric iDownload Blog found out that thieves can easily reset the Apple Watch.
The users of Apple Watch are not required to set a password unless they have to use the device for Apple Pay in which case the user has to enter the passcode every time it is removed from the wrist or rebooted.
No response from Apple has been received yet.
The Apple devices are usually protected by an Activation code that makes it almost impossible to factory reset the devices without the Apple User’s password that dropped the rate of iPhone theft.