Why the icon appears
Android watches are designed to show a disconnection indicator when they're not paired to an Android phone. When you're using Merge to connect your watch to iPhone, there's no Android phone in the picture - so the watch shows this icon. The Merge connection to your iPhone is working fine; the indicator is simply the watch noticing its native Android pairing is absent.
How to hide it
You can set the indicator to hide itself after 2 seconds instead of staying visible on the watch face.
- On your watch, open Settings.
- Go to Advanced features.
- Tap Status indicators.
- Select "Hide after 2 seconds".
What else this affects
Setting indicators to hide after 2 seconds also applies to the charging indicator and Do Not Disturb indicator - they'll appear briefly and then disappear rather than staying on screen. The exact menu labels may vary slightly across different watch models and Wear OS versions.