I mean, there is Apple Watch Mirroring, which does allow remote control of an Apple Watch for accessibility purposes. If they were able to somehow exploit that, I would consider it hacking.
I sort of hate how this thread immediately rallied around “must be crazy people hallucinating” and I hope Apple takes the reports a bit more seriously & investigates.
Edit: I do agree that passwords guessed or phished doesn’t count in my mind as hacking.