Apple Watch watchOS10 still displays sensitive information when not being worn

Prior to watchOS10, I marked a view that I want to hide sensitive information when not being worn by using .privacySensitive() This had been working just fine.

Comes watchOS10, this doesn't work anymore. Even with this simple code

                        Text("TEST Privacy")
                            .containerBackground(for: .widget) {
                                Color.black
                            }
                            .privacySensitive()

The text view is displayed even when not being worn.

Has anyone experienced this? It seems like a bug to me. Any workaround? Thank you.