Hi, Doug Bush
The missing option can happen when the document is open in Word for the web, or when the visible mark is actually a background object rather than a standard watermark. Watermarks are best managed in the desktop version of Word.
Besides the solutions provided by the Q&A Assist, here are some suggestions you can try:
If you are using Word in a browser or on a phone/tablet, select Editing > Open in Desktop App, then check the Watermark menu again. Word for the web has limited watermark support.
In desktop Word, select Home > Select > Selection Pane, or press Alt + F10 on Windows. Look for an item named Picture, Shape, WordArt, or Text Box. Select the eye icon to identify the correct object, then select the object and press Delete. The Selection Pane is useful for objects that sit behind the document text and cannot be selected normally.
If the mark looks like a full-page color, texture, or image, select Design > Page Color > No Color.
If the document was converted from a scanned PDF, the watermark may be part of the page image itself and cannot be removed separately in Word.
Thank you for your patience in reading, I hope this information has been helpful to you.
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