Sorry to say you are wrong here Davey, your expectations are too high! . I use both HRM’s Polar and Garmin for over 40 years. I also have a garmin sports watch.
The two devices use very different sensors. The HRMs pick up the small electrical signals sent by the heart. As such they are accurate and quick to respond. Sports watches use a green light that passes through the skin and records the dilation and contraction of blood vessels. So there are two downsides if your exercise is vigorous eg whilst running or bumpy cycling the sensors cant focus on the blood vessels as the watch moves. When they do work they are laggy eg I can stop ( because I have to !! ) at the top of a hill and my garmin hrm might report 145 bpm and falling . My garmin watch may show 96 bpm and climbing.
However at moderate exercise and rest , both align, so your desire to measure recovery rate whilst sleeping will be fine. What the watch is doing here is determining the time your heart takes to resume normal resting heart rate and converts that into a “ body battery or recovery score” . Because you are only moving slowly the green light sensors can lock on the blood vessels and give you a consistent reading
When I had Covid my smart watch highlighted something was wrong before I even had symptoms, so they do have their place. But for measuring your max exertions on the bike or running / cycling / walking stick with the hrm’s