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You could definitely bypass that by taking apart the watch and reading the flash chip externally. You could possibly also bypass that by running something over the SWD pins that dumps the file contents. Also, I don't know whether Bluetooth passkey and whitelist are still active even after a reboot without loading code or in DFU mode.
How about adding a boot script that wipes the clock if the correct key is not entered? Unless you connect it with bluetooth to a computer it should be pretty safe..