What's the method for connecting the watch to the Internet?

Garmin Bounce [0] has some of the features on your list and many more (like on-watch LTE). I don't believe it includes the ability to use heart rate and stress levels to trigger automatic alerts. I have no first-hand knowledge in this field, but I would imagine it would be very difficult to implement this without many false positives especially for kids in the day care and school settings because excitement and play likely look very similar to anxiety and distress from the point of view of the heart rate sensor.

0: https://www.garmin.com/en-US/p/714945/pn/010-02448-02/