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I have an iPhone and Apple Watch with latest OS updates.

My iPhone has some credit cards and also a Clipper transit card. The credit cards automatically are on my watch, but the transit card does not show up on my watch. It asks me to "transfer" the card, but I would like it to be on both.

Why is there a different behavior here compared to credit cards and can I have it on both devices synced?

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Transit cards can only be on one device at a time.

You can only have a transit card in the Wallet app on one device at a time. To use your transit card on a different device, you can move it from your iPhone to your Apple Watch or from one iPhone to another.

https://support.apple.com/en-us/HT209494

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