I had the same issue where the Nothing pro watch detected steps when workout was on and not when it was out of workout. I went to the authorized service center and they were kind to replace it with another new watch. But surprisingly that watch also had the same issue. Then I started to think it might be some setting in my phone causing this then we tried on another phone again the same issue workout steps are gathered and not the normal footsteps when we are out of workout mode. The next day Nothing technician called me and asked to visit the showroom. I went and then when he walked with my watch the normal footsteps were tracked and when I walked it was not.
Long story short, this was due to the fact that I was moving my wrist too fast when I was brisk walking. The solution to this inconsistency is to walk normally with the hands down and not moving the wrist too fast or too much. You can walk fast but ensure your wrist doesn’t go up and down too fast. I am posting this to help everyone who might be facing this issue.