Apple Watch not recognizing my voice.

I have an Apple Watch Series 4 and it has stopped recognizing my voice for with all apps. Walkie-Talkie, Voice Memo, Siri, even phone calls and text messaging are not working. I can answer calls and hear everything fine.

I have restarted both my iPhone XS and Watch multiple times, all software is up to date. I looked through old similar issues and turned Hey Siri off for several minutes and back on as well, then I unpaired, repaired and restored my Watch as well. Are there any other options? Could this be a hardware failure of some sort?