Not sure if this will work for everyone or if I just lucked out. I was in the same situation, here's what I had to do get it to update. unpair your apple watch.
Go to beta.apple.com and download the beta Watch OS7 on your phone. It will fail but that's okay, it needs an apple watch to be paired.
Once it fails, go to the watch App on your phone and pair the watch.
It should allow you update to the OS 6.X.X
Hopefully this helps. I want to say, when you try to download OS7, it erases the previous updates, so you get a clean slate next time you pair the watch.