Haven't seen this yet.
Dumb question - did you sync your watch with Garmin connect just before comparing the two? Race prediction times can definitely change after a workout, even if your VO2 max or lactate threshold don't change. I'm not sure if race prediction times can change as a result of tracking done by the watch in smartwatch mode (e.g. your HR zones change as a result of RHR changing).
This error is just a side effect of other infamous bug: LHTR not being synced into Garmin connect. So you get different predictions on your watch than in connect.