I am having the same issue and when I called Garmin to exchange the watch because of its wild inaccuracy in pace calculations, I had to go through an ordeal. First I was told to use the "walk" function instead ?!!! Then they tried to pass off a refurbished watch to replace my new defective one and then would only send the new watch after I returned mine. It's finally been sorted but I am not impressed and will think twice before getting a Garmin watch again.
I wonder running on hills could bring an impact. Would VA3 GPS capture your elevation change as well? I recall years ago on Google map in San Francisco areas with many hills would show a distance not too far from point A to B but the walking time estimate was so much longer than the usual walking on a flat area.