I recently noticed that the temperature display on the default watch face on my Apple Watch quit displaying the correct temperature. If you experience this, here’s how to fix it:
On your iPhone, in the Watch app, go to: My Watch (tab) > Weather > Default City > choose Current Location (or a specific location from those that have been added to the Weather app on your iPhone, if preferred).
Even though the correct city was selected in the Watch app on my iPhone, I had to change it to Current Location to get the correct temperature to display.