Every time I turn on the always on display, the “dim” watch face freezes after a period and becomes unresponsive. I have to press the physical button to unfreeze it then it shows the facer loading watch face screen before it’s but to normal.
I am using wear OS 3 but I also noticed this issue when I had wear OS 2 as well.
I am going to surmise that you never turn your watch off. I used to have that problem with my Fossil Carlyle gen 5 watch. I found that if you leave it running for long periods, Facer becomes unstable, or WearOS does, and it effects Facer. I cured it by turning my watch off for a minute and then sticking it on the charger. Mine always turns itself back on while charging for some reason. My Samsung watches don’t do that.
Yes my watch is always on even when I’m not wearing it but it works perfectly fine when the always on display is turned off.
For grins and giggles try turning your watch off before charging it and use AOD and see if anything changes. If nothing else it will be good for your watch just because of it being restarted.