If your Apple Watch Ultra 2 is locked due to incorrect password attempts, you can reset it using these steps:
Force Restart
1. Press and hold the side button until you see the power off screen.
2. Press and hold the Digital Crown until you see the red "Reset" option.
3. Tap Reset, then confirm to reset the watch.
This will unpair the watch from your iPhone and erase all content and settings.
Reset via Charger
1. Put the Apple Watch on its charger.2. Press and hold the side button until you see the power off screen.
3. Press and hold the Digital Crown until you see the red "Reset" button.
4. Tap Reset, then confirm to reset the watch.
After unpairing, you can set up the watch again as a new watch. You'll need the Apple ID and password used to originally set it up.
Update to Latest watchOS
Ensure your Apple Watch Ultra 2 is running the latest version of watchOS. Update to the newest version available in the Watch app on your paired iPhone.
Contact Apple Support
If the reset process doesn't resolve the issue, contact Apple Support. There may be a hardware problem requiring repair or replacement under warranty.
In summary, force restart, reset via charger, update watchOS, and contact Apple if your locked Apple Watch Ultra 2 won't reset. These steps should allow you to erase the watch and set it up again to regain access.
Citations:[1] https://support.apple.com/en-ae/guide/watch-ultra/apd0e1e73b6f/watchos
[2] https://www.youtube.com/watch?v=W1QlvRpXOHA
[3] https://www.youtube.com/watch?v=4LawigTjO-g
[4] https://discussions.apple.com/thread/255451942
[5] https://discussions.apple.com/thread/255591762
[6] https://discussions.apple.com/thread/254932948
[7] https://discussions.apple.com/thread/255453237
[8] https://www.youtube.com/watch?v=OqS9iAOp2R0