Sleep tracking is working not as expected on iOS14/WatchOS 7 with Health app and AutoSleep app too

Hi.

It looks like the new sleep tracking feature in iOS14/WatchOS 7 is working not as expected. I was using the AutoSleep app for years on my iPhone/Watch to track my sleep, and after updating to iOS14 and WatchOS 7 tried to enable the native new feature, but it shows me completely incorrect data. It does not track sleep as expected.

The Health app asks to set desired sleep hours, but unfortunately pretty often I go to sleep much later or much earlier, and wake up also later or earlier. I have a lot of reasons for it, including my work schedule. Unfortunately, I can’t go to sleep exactly when scheduled.

The AutoSleep app was able to detect proper sleep time by itself, based on heart rate and activity. The new iOS 14 sleep feature doesn't work that good. For example today I went to sleep at 6:30AM and woke up at 3:15PM (had to work during the night). The sleep schedule was set to 4AM-1PM, and the Health app shows me that I went to sleep at 4:30AM woke up exactly at 1PM :-O

So it’s completely irrelevant. And the worst part is that the update ruined my AutoSleep app. Now it does not work, can’t collect data etc. I’m trying to find solution at the moment, trying to reset my watches (S4 and S5), trying to reset permissions etc., but... nothing helps right now :-(

Any ideas what can I do to get my sleep tracking back?