I found entries for a Daniel Watts in Norfolk County. He was freed in Norfolk in February 1805 by -- Cox. I think he was probably freed in Norfolk County, as I've transcribed the Norfolk Borough/City records and could not find an entry showing him being freed in 1805. I also searched through the surviving original deeds in Norfolk City and didn't find anything for him there. Since you've found him in Chesapeake, this suggests that he was probably living in Norfolk County and that you should search those records.

If you send me your mailing address privately, I'll send you a photocopy of the pages from the register of the Watts I found.