Over the weekend I confirmed that I was able to boot the Apple Watch when the profile was removed from the iPhone. This was tested with an initial boot and re-boot.
When the profile was reintstalled on the iPhone, the Apple Watch once again failed to boot.
Failed to boot = stuck on Apple Logo.
Next step is slowly building up the profile to see if any configuration setting is the culprit for the boot failure.
The boot failure is being caused by a setting in Configurator -> Restrictions -> Apps
Restrictions are set as follows: "Restrict App Usage" set to "allow only some apps". The apps are the settings app, phone app, watch app, and our developed application.
Obviously, some additional application is required for WatchOS 6 to boot that is not backward compatible with the old requirements.