I think this is still No as of today.

There's a few new "intelligent" things on the Watch. Transcript from the September event at 14:52 (bold mine):

The new S10 SiP is designed for performance, power efficiency, and intelligence.

Its 4-core Neural Engine quickly processes machine learning tasks and uses advanced transformer models to power the intelligent features

you already use every day, like double tap, on-device Siri, dictation, and automatic workout detection.

Plus, it enables Crash Detection and Fall Detection, which uses machine learning to identify the motion signatures

and impact forces that occur during slips, trips, and falls. And, to improve phone calls, Series 10 uses a new neural network

to suppress background noise, so you sound clear and crisp on the other end, even in noisy environments

like a crowded restaurant, city street, or windy day. watchOS 11 brings even more intelligence to Apple Watch.

Now, the Smart Stack automatically adds new widgets right when you need them.

The new Photos face uses machine learning to identify, score, and curate the best photos from your library.

And the Translate app comes to Apple Watch, using machine learning for speech recognition

and rapid translation. Of course, intelligence powers many of the health features on Apple Watch as well.

But all of these are incremental improvements -- in particular, the Neural Engine was on the S9 SiP already. They never call it "Apple Intelligence" here, and on the website, Apple Intelligence is also not marketed as being a feature on Apple Watch. Wikipedia also agrees, so far.

running a model on device or just accessible somehow? Or maybe apple intelligence always runs on the cloud

just accessible. I believe At the moment it’s relying on the phone.