Why does Apple not put an auto brightness toggle on watch

and it is not a hardware restriction, the designers decided to omit it in the software options... because letting people decide how bright their watch screen is makes perfect sense.

No, I want a toggle like the phone has I’m pretty sure every galaxy watch I’ve had has that feature and I had all of them aside from the 5.

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Does the watch have the hardware to measure ambient light?

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It does, and when you raise your wrist it 'wakes up' and auto adjusts to ambient light level. In my experience, it does it quickly and to a viewable brightness level >99% of the time.

OP, are you talking about how dim the watch is in 'standby'? like the always on display feature on the last 2 models? It dims when you lower your wrist to save battery life, and should automatically wake and get brighter when you raise your wrist as if to look at the time.

The answer to your question though is battery life.