Can't pair iwatch to iphone 6

I just got the iwatch and I am trying to pair it to my iphone. I open the watch app, start the pair process using the picture (I've also tried the code) then I get a notification to update my apple watch (picture included). Whether I hit "update now" or "skip the update and continue", I get a very quick pop up notification that my iphone is our of date. It then disappears. My iphone is up to date and there are no updates available (12.4.3). My phone then automatically goes to "unpairing apple watch" and I am back at square one.