The remaining Watchdogs either joined some other group or remain very small, like certain gangs and hate groups in the real world. Death of the Superior was sort of the sign of their fall. I’m sure they lost a lot of their funding source too.

Honestly I think they should have just made the flagsmashers the watchdogs and had Flagsmasher as the leader. I would have been a good tie in.

Felix Blake was there leader. He might still be out there.

I feel like some of them probably joined the Flag Smashers.

They could have a line like, "Members of past terrorist groups, Like watchdogs, joined the Flag Smashers" or something. But I doubt they will

Not sure if you guys watched the first episode, but sounds like the Flag Smashers have a different objective than Watchdogs. It’s okay that MCU have various groups of criminals. The real world we live in have various groups existing at once in the world, so cool seeing the MCU doing the same.

When Torres said there were groups with worst names, I immediately thought of the Watchdogs.

The Watchdogs' name wasn't bad lol.

But this topic has been discussed before and I strongly agree with Option B. Ivanov (and Nadeer) was their source of funding, and without that funding, their operations were likely crippled. They probably crumbled, as @MarvelSharky pointed out.

And yeah, the Watchdogs have very different goals from those of the Flag Smashers.