I did not see this alarm in the smartcraft guide. Does speed display properly in cruise? Do you have GPS wired to smartcraft? You can select GPS and or Paddle for boat speed and the speed at which it changes from paddle to GPS. The paddle is unreliable and I have my 320 set to switch to GPS at 8MPH. You can access this info/changeover speed within the smartcraft menus. Likely stuck paddle and or wiring if not a setting as mentioned above.
Our boat initially displayed it's speed & computed it's range from the paddle wheel. In '06 we had a Raymarine C80, sounder, GPS & radar added by a RayMarine Tech. During setup of the C80 he interfaced with the SC & replaced the paddle wheel data with the GPS data. Two yrs later the interfaced reset to factory specs, we lost the Speed & Range output on the SC & the tech had to return & re-interfaced to correct. In the process of trouble shooting before calling the SR tech I learned on CRS the paddle wheel sensor is connected to a wiring harness on top of the starboard engine. If than came unplugged I assume it might cause your problem. Our SR tech also said he's replaced a number of paddle wheel units over the yrs so it might be a unit failure. Hampton on CRS also says he's rebuilt his paddle wheel.