My F6X Pro and now my F7 Pro both have this bug, which I confirmed again this weekend while in a remote area. If the phone is not within cell service range, but is connected to the watch via bluetooth, the watch REFUSES to calibrate the altimeter from the DEM on the watch. It will say "No DEM elevation available" even when it has the data internally. It ALWAYS tries to check via a data connection through the phone. You have to disconnect the phone/watch connection for it to use its internal DEM data.
Does Garmin only test in places with cellular service? How would they not know about/fix this bug after several years and multiple models?