A new report from 9To5Google notes the disabled feature after updating the Google app beta to version 10.92.8. If you're not using the beta, then you should have no issues and Google Assistant should continue working as intended.
It also goes without saying that since the Google app and Google Assistant are linked, any use of a beta could always alter things. It is beta software, after all.
Google Assistant on Wear OS will be fixed soon enough
Although the beta app may break Google Assistant on Wear OS for the time being, it'll be fixed soon enough.
Eventually, Google will send out a new version of the beta that re-enables the voice assistant. Or it'll be fixed in a new stable update of the app.
If you don't use Google Assistant on your watch then staying on the beta probably won't harm anything. However, users should keep in mind that certain functions which you can use by voice, like sending messages, will not work.
Essentially any voice functions are broken with this version of the Google app beta. That being said, you can always uninstall the beta or revert back to an older version. And that should solve the issue until Google fixes it.
Google has not however acknowledged the bug that breaks the feature. Not yet. And there's no telling how long it will take to get it fixed.
Google Assistant is a big part of the watch navigation
Google has been focusing more on hands-free navigation of late. Especially since the launch of the Pixel 4 and Pixel 4 XL.
Wear OS devices do come with touch screens, but using your voice is obviously a whole lot easier. Considering this it might be wise not to update to the latest version of the beta if you can avoid it.
Not only will that prevent the Assistant from breaking until a fix is sent out, but you shouldn't be missing out on anything if you don't update.
Wear OS has been getting a steady surge of new devices, with the most recent ones having been announced at CES. This includes the Falster 3 from SKAGEN, as well as the Diesel Fadelite.
Others were announced in the Fall of last year, too. Like the the PUMA smartwatch, the DIESEL On Axial, and the Emporio Armani Connected Smartwatch 3 just to name a few.