Run dotnet tool install -g dotnet-hotrewatch --version "*-*".
If you are on Apple Silicon you may receive an error zsh: killed dotnet-hotrewatch. To workaround that run codesign -s "-" ~/.dotnet/tools/dotnet-hotrewatch after the installation. This is a bug in the .NET SDK that will hopefully get fixed soon.
See the original usage documentation. The main difference is that you need to use dotnet-hotrewatch <arguments> instead of dotnet watch <arguments>.