Android Wear Randomly setting phone to Do Not Disturb!

[Preach2k]

I have Android Wear on my Moto360 2nd Gen and 7.1.1 on my Pixel XL. I do not have the option to mute phone while connected to watch enabled in the Wear app. However, over the past week or so, I will sometimes look at my phone and see the Do Not Disturb icon by the clock. When I check, it say Alarms Only - Android Wear and has option to "End Now". I look at my watch, and it's not set to Do Not Disturb, I double-check to make sure the option to mute phone hasn't re-enabled itself in the Wear app... can't figure out why this is happening, but it's already caused me to miss a couple important texts/calls.

Has anyone else been experiencing this? Do you know if there is a fix?