Yes, the watch can also be used normally without the connection. The connection only needs to be active if you want to upload the data to a fitness app.

Yes, the time display works without a connection to the smartphone. The connection is only required to load the data onto the fitness app (in my case, for example, GoogleFit). If the watch is not connected, you will of course not receive the notifications (e.g. notification when a call comes in or a Whatsapp message arrives: this only works if you have connected the watch to your smartphone via Bluetooth)