Google has been working on a backup system for Wear OS watches for some time now. The system wasn't finalized in time for the Google Pixel Watch. These backups would allow you to more easily pair your Wear OS watch to a new phone without having to set up your watch from scratch. With these backups, you can easily restore most of your previous data when you switch phones.
See also: Google releases new Weather app for all Wear OS 3 watches

According to 9to5Google, the new Google Play Services update includes Wear OS backup functionality. The app, which is a core service on Android that handles tasks like syncing notifications, location data , and more, now reveals that you'll be able to back up your watch face settings, app data, and device permissions. Wi-Fi passwords are also included in the data backed up.
See also: Google has started rolling out the new Wear OS Play Store
By setting up your watch from scratch on a new phone, you can download data that was previously saved to the cloud. The ability to back up custom watch faces is extremely useful because many watch face apps don't offer this feature and having to set everything up again to your preferences would be tedious to say the least.

See also: Qualcomm's Snapdragon W5+ will improve Wear OS watches
There's one small downside: Wear OS backups will be opt-in, meaning that if you forget to enable the feature, you'll have to start from scratch when you reconnect your watch to another phone. It's possible that Google wanted to strike a balance between privacy and convenience, though since backups are always encrypted on Google, your data should generally be safe.
Information source: androidpolice.com
