After I installed the last Watch 4 update on Feb 2022 the function 'Touch screen to wake' is not working anymore when 'Power saving' is ON. For me, it was a very important feature because with the power saving on and 'Touch screen to wake' I use my watch for 3 days without recharging. Now I am forced to press one of the two buttons to see the display (I do not want to use 'Raise wrist to wake', a feature that is available only when power saving is off)
Now with this update, 'Touch screen to wake' is working only when 'Power saving' is OFF.
Same issue here. I have just updated and the feature I user the most "Touch screen to wake" is not working anymore while power saving is on. I have reported it to Samsung. You should all do the same and hopefully we will receive a quick fix.