You are right, this sort of feedback from a fitness app is massively unhelpful and disincentivizing if not darn right depressing. Particularly if your activity level hasn’t decreased sufficiently to justify the drop. But it is KEY to remember that this is just a tool and the real truth is in how you feel. Walking is great and if maintained will help maintain your health. If you enjoy, keep doing it. Increasing the intensity will increase the health benefits. Steadily speed up you pace over time. Walk the same distance in a shorter time. Introduce a hill or two into your walk. Extend your walk, but at a quicker pace. The more you raise your heart rate during exercise, steadily and within limits, the greater the health benefits. Don’t be discourage by a faulty and defective health monitoring tool! Your health is far too important. Good luck.
Apple needs to resolve this issue!