I find that my Garmin 735XT measures either 2x or 3x the stroke rate. So if I am going at 26 strokes/min it will measure 52 bpm or 78 bpm heart rate. So definitely it is confused by the arm motion or stretching of the skin/muscles under the optical sensor.
My solution is to tie the ends of my watch strap to an elasticated chest strap, so I am wearing the watch against my chest! I can't see the watch while rowing but at least it is measuring HR ok. I guess the more elegant solution is to buy a chest strap HR sensor and have that communicate with the watch, but for now I am quite proud of my hack.