MacRumors published a story that Apple has released watchOS 10.4 with a fix addressing the ghost touch bug.
Apple Releases watchOS 10.4 With Fix for Ghost Touch Bug
Apple today released watchOS 10.4, the fourth update to the watchOS 10 operating system that was released in September. watchOS 10.4 comes over a month after watchOS 10.3, a minor update that brought a new watch face.
watchOS 10.4 can be downloaded for free through the Apple Watch app on an iPhone running iOS 17 or later by opening it up and going to General & Software Update. To install the new software, the Apple Watch needs to have at least 50 percent battery and it needs to be placed on a charger.
