How this works is a little complex, and I might not have it exactly right because I don't have an array of devices and apps to verify with handy, but I think it goes like this:
If your watch app is independent, I think when the iOS app updates to the latest version, Series 1 and 2 users will keep the older version of the watch app because there's no requirement that the watchOS and iOS app versions stay in sync. (I'm not sure whether this requires that an older version of your app be on offer in the App Store, or whether the watch will just stand pat.) If your watch app is dependent on your iOS app, the two must update in sync, so the watchOS app will be deleted from the paired watch when the minOS increases to 8. This latter scenario I am sure of.
Users of Series 1 and 2 watches paired with a phone that can update to the latest iOS and downloading your iOS app for the first time will not be offered the watchOS app because their OS version is not supported.
If you're offering a version of your iOS app to users of phones that cannot update to the latest iOS, that version of your app has a watchOS app that requires <= watchOS 6.2.1, and those phones have Series 1 and 2 watches paired with them, I think those watches will be offered the older version of the watchOS app.
Again, all of this offered to the best of my memory and without any testing to confirm.