Assuming a Rolex gets stolen and reported as stolen, it can never be serviced by any reputable watch repair shop because it will be confiscated once that happens. In the case of Rolex, they will get serviced BY Rolex. Mechanical watches do need servicing otherwise they wont function properly. So even though watches cannot be tracked to the same level of fidelity as say, a phone with an antenna, it will likely still pop up eventually.

You can also make the argument that "Find My" and "activation locks" type stuff just means that the parts are going to get scrapped and sold. That could likely happen in the watch case too, so those features were never a silver bullet.