I FOUND THE EASY FIX!!!
want to start off by saying - I tried about 30 different suggestions on here and nothing worked. Was about to call it quits.. then I figured this out. SUPER EASY!
Step 1:
-go to settings on your phone
Step 2:
-click the top box with your name to pull up your apple ID settings (Right below the search bar)
Step 3:
-scroll down to where it has the devices signed into your apple ID
Step 4:
-your watch will be listed here, click on the watch and select "remove from account"
AFTER I DID THIS, I DID THE NORMAL APPLE WATCH SETUP AND IT UPDATED WITH ABSOLUTELY NO ISSUES...
HOPE THIS HELPS YALL!