I’ve been tracking this question and all it’s answers since I got the new iPhone 12 because my Apple Watch Series 2 wasn’t connecting to the internet. I tried everything on this thread, but here’s what worked for me and hope it helps someone else..
Go to Settings > General > Reset > Reset Network Settings
Delete Apple Watch App
Hard reset your phone
Redownload Apple Watch App
Manually pair Apple Watch to your phone
When you get stuck on the “cannot connect to internet” part, leave your app but DO NOT CLOSE IT for a few hours. (I left both devices charging overnight.)
After a few hours, while connected to WiFi, go back to the Watch app and press “Try Again”
This worked for me and the software update took 5hrs but I can finally use my watch again!!