Almost everyone with tattoos has experienced this issue, probably you have already seen the hundreds of posts about it for the past 7 years, but the severity of the problem with wrist detection varies based on the darkness, technique, age, etc. of the tattoo. If your previous watches cooperated better, then it’s probably because the sensors on the back of the Ultra are situated a bit differently, (same circular layout, but not the same) so now the sensors are being blocked more by the pattern on your wrist. Also, the Ultra is heavier than previous models, so based on how you hold your hand during the workout, if the band is not tight enough, the watch body may slightly shift away from your skin instead of laying flat, making things worse. In any case, the optical sensors on the Ultra in this regard were not made better or worse for tattoo users. Auto-pausing the workout is not what happens to you, that’s a separate feature you can disable in settings under workout. Your workout tracking fails because wrist detection fails.
Try wearing different bands, try wearing your watch further up or down your wrist or switch hands if that’s possible for you.