It is not currently possible to spectate on friends in Fortnite Chapter 3, as it was throughout Chapter 2. You can, however, spectate on all surviving players after you have been eliminated from a match.
Exactly why the “Watch Game” option has been removed is not clear, but we do know that Chapter 3 has been a huge project for Epic Games, and that no doubt some features won’t have been considered high priority enough to make the Season 1 cut. Migrating the entire game from Unreal Engine 4 to
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