Apple Watch Series 2 activation error

So I’ve been trying to pair an Apple Watch series 2 Nike edition with an iPhone X and and iPhone 6 to no avail. It says the watch software needs to be updated and when you select update now it goes through the process and then gives an activation error. Says to restore the phone and watch if problem persists to contact Apple support. So I did that and they are trying to tell me it’s an internal problem that maybe the watch was dropped and damaged inside (it’s never been dropped) and that I need to send it in repair to the tune of $249. However I’ve also read this is an issue that other people are having and I feel it’s a software issue and Apple just wants a ridiculous amount of money. Just wanted to make everyone else aware contacting Apple with this problem does no good for you the consumer. I have included pictures of the issue if anyone has come up with a solution or fix for it.