I've used apps like this and honestly, some of the results are decent if the watermark isn't too big or intricate. Cleanup works pretty well on Android, but keep in mind it really depends on what you're removing: if it's a small logo in the corner, it'll probably come out clean, but if it takes up half the photo the AI might leave artifacts or weird patches. Other options worth trying are Remove.bg (which is mainly for backgrounds, but has options to clean stuff), Huawei's Inpaint (if you have that phone), or Adobe Firefly if you access it through the web. They all use generative AI, so quality is hit or miss.
What works best is exporting your photos at high resolution before using any app, because that gives the algorithm more info to reconstruct the area. On Android, most of these apps have a free version but with quality limits or a cap on how many edits you can do, so test it out first with a photo that's less important. If the watermark is really annoying, you might end up having to edit it manually with tools like Snapseed (which has a pretty good healing brush) or Photoshop on mobile, though that takes longer.
Whether it comes out pixelated really depends on the size of the watermark and the AI. If you just need to remove something tiny, it'll look fine. If the watermark covers too much area or has complex details behind it, then yeah, the result might look weird, whether it's AI or manual editing.