The Steel Watch is a new part of the city guard in Baldur's Gate 3. Once you reach the titular city, you will notice hulking automatons patrolling the city under the command of Enver Gortash. As Gortash is one of the main antagonists of act three, you'll need to deal with him eventually, but the Steel Watch makes that a huge problem.
Baldur's Gate 3: How To Disable The Steel Watch
The mechanical Steel Watch are dangeroud automatons that stand between you and defeating Gortash. Here is how to disable them in Baldur's Gate 3.