It is because your project is a "Team Managed" project, which it doesn't have a configurable permission scheme on a per project basis out of the box liked "Company manged" project.
Here is what you need to do -
1) Reference the following community posting on creating new project role where you can then add users to the new role - https://community.atlassian.com/t5/Team-managed-projects-questions/Add-Watchers-to-a-Next-Gen-Project-Jira-Item-Epic/qaq-p/948290#:~:text=Go%20to%20Project%20settings%20%3E%20Access,Add%20or%20remove%20issue%20watchers%22.&text=Hope%20this%20helps!
Also, here are few other links on Team Managed projects related information -
https://support.atlassian.com/jira-software-cloud/docs/next-gen-permissions/
Hope this helps.
Best, Joseph Chung Yin
Jira/JSM Functional Lead, Global Infrastructure Applications Team
Viasat Inc.
First place to check is your JSM project's permission scheme - you need to be granted with the "Manage Watchers" permission.
You can access the permission scheme (if you have Jira Administrators right - I believe you should have it) via Project settings >> Permissions
In the permission scheme, look for the following permissions section -
Best, Joseph Chung Yin
Jira/JSM Functional Lead, Global Infrastructure Applications Team
Viasat Inc.
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Please check the Permission Scheme associated with the project and make sure that you have the manage watchers permission on the project, it should give you the ability to add / remove watchers.
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You can do it from the project settings - in Permissions Section find the permission scheme and check if you are in the “manage watchers” permission.
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