Do you suffer from a health condition that requires monitoring O2sat?
The Apple watch data isn't really useful for this at all as the frequency of monitoring is just too low. There are a bunch of ~$100 devices that you can get from Amazon that do a fantastic job monitoring O2 Sat for a night and have nice integrations into Apple/Android.
I do wish the CPAP's offered this type of integration - that is, they had a Bluetooth receiver to which I could pair an O2 sensor, and have the data coupled with my breathing analysis. This would be nice to have in OSCAR (the open-source analysis package) or even in Apple Health.
Instead, the manufactures like ResMed treat this data as a walled garden and try their hardest to require everything to go through a Sleep Doctor who pays them a non-trivial data subscription.
It amuses me that Apple will block that EU mandated store stuff if you move a EUnphone to the US after a few weeks (at least I understand that to be the case) but doesn't do the same for this feature.
VO2Max is based on GPS and heart rate sensor measurements, processed by a deep learning algorithm that uses physiological ODEs (ordinary differential equations). Very cool algorithm.
Apple Watch sleep stages (and sleep apnea detection) is based only on 3D accelerometer data.
It seems likely that one way or another it'll be resolved-- either by overturning the ruling in Apple's favor or Apple just gives Massimo a bunch of money-- and then it will come back.
It is not related to your blood oxygen level.