When the stem of either a mechanical wrist or pocket watch is fully pulled out and the watch appears to stop, what happens inside the watch; are the hands just disengaged, is the watch stopped and what happens to the main spring, does it continue unwinding or is it prevented from unwinding?
On mine I unlock, or unscrew the stem, nothing happens.
Pull it out to the first detent - no change, all continues to work.
Pull out to the second detent, the hands stop (second, minute & hour) and I can change the time.
There will be manyu answers as there are many different internal mechanisms.