A clock or watch using a digital display to show an analog clock face

It's tempting to call it a simulated analog watch but, strictly speaking, it is still an analog watch.

Analog watch The name refers to the design of the display, regardless of the timekeeping technology used within the watch. - wikipedia

This design method is called a

skeuomorph.

Pronounced /'skju ə morf/, it is a usually decorative design pattern that is in imitation of a prior, possibly necessary pattern.

The method is found all over any kind of design that allows decoration: architecture, graphic design, computer interface.

For example, neoclassical pillars aren't solid rock or even load bearing yet they are designed to look like ancient columns. Lots of features on ancient Greek temples, like plinths, socles, mutules, and modillions are decorative to evoke (non-functionally) wooden structures in prior Greek building design.

Some ring tones on smartphones are made to sound like the actual physical bell ringing on older phones.

Currently the 'save file' icon is patterned after a 3 1/2 in disk which no one uses anymore.

So mimicking the hands of an analog clock in a bit pattern picture on a screen is a kind of skeuomorph.

The word itself is a modern invention though, coined by an archaeologist in the late 1800's (noticing the pattern with Greek architecture). It is made of Greek roots roots 'skeu-' meaning vessel, and '-morph' meaning 'form'.

They used to be called Liquid Crystal Analog (LCA) displays. I haven't found a term or acronym for the equivalent LED based displays.

Due to their uniqueness they have been called many things but most common is probably "Digital Hands" Watch

Made by Gucci

Citizen
https://www.chrono24.com/citizen/seven-9560-lcd-digital-hands--inkl-mwst--id9551314.htm

Kessel and others

For the latest smartwatch with choice of digital hands mode
looks just like an analogue see TAG Heuer Connected Image

Watch this video of this amazing Intel powered wearable https://www.youtube.com/watch?v=uNqJcQh8Kl0