Indoor walk/run - HR monitor not working?

So not sure if this is a bug or if the program was designed like this, but when I select either the indoor walk or run exercise, the watch does not monitor my heart rates (I tried it with both a chest strap (Polar) and optical sensor). How does it accurately calculate calories burned if it doesn't measure my HR? Just by distance and time? Especially for me who walks on maximum incline on treadmill.

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Also check this setting:

On your iPhone, in the Watch app, go to: My Watch > Workout - if it is presently turned on, turn off Power Saving Mode.

(This mode turns off the heart rate sensor for runs and walks, so can be used to preserve battery life during long workouts).

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