I’m currently having the same issue. I did the hard reset, I reset my network connections, uninstalled add reinstalled the watch app and still get the same message when I have internet connectivity. Has anyone else gotten past this?
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I tried everything in this thread. The only thing that worked was pairing the watch with a ios13 device, updating, resetting the watch and then pairing with the ios14 device. Hope this helps anyone struggling with the same issue.