So after 6 hours of trying different things I finally got my S1 watch paired on iOS 14. Tried it once, then unpaired and tried a second time with another phone which was not working. Both times it worked successfully. My steps:
Absolutely imperative to be on a 2.4 ghz network. I use multiple ubiquiti access points through my home. Had to make sure the 5ghz band was completely shut off and reset both access points. Then I reset the network settings on the phone and rebooted the watch. The first time pairing I clicked the pair button that pops up when the watch is near and got the no network connection loop. I then reboot the phone again and go into the watch app (do not click the watch pair now that pops up). Open the watch app and hit pair. After these steps the update showed up and updated and paired with the watch successfully.
I then unpaired and tried on my wife’s se 2020. Same steps with resetting the network settings then I clicked the watch prompt that automatically appears and got an automatic unpair right away. Rebooted the phone and opened the phone app manually and paired successfully.
I’ve tried this twice and it’s finally worked both times. Hopefully this helps some people.