There are four ways to silence an Apple Watch, including two forms of muting, a Theater Mode, and a Do Not Disturb feature.
AirPods should pair with an Apple Watch when they're initially paired with your iPhone, but you can pair AirPods to an Apple Watch manually.
I recommend these features and settings to everyone who's just set up a new Apple Watch or wants to get more out of the one already on their wrist.
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