Hi babbitts2001,
Thanks for reaching out in Apple Support Communities. I understand you're unable to unlock your Apple Watch and update the watchOS software. I'll be happy to help.
With the issue you're experiencing with the inability to unlock your Apple Watch, I recommend performing a force restart. This may help for you to successfully unlock your Apple Watch. If needed, here's how to perform a force restart: How to restart your Apple Watch
If that doesn't help, the next step is to unpair and erase your Apple Watch to factory settings. When you unpair and erase the Apple Watch to factory settings, it automatically creates a backup of your data to your iPhone. Here's a helpful article on how to proceed: Unpair and erase your Apple Watch From there, you can pair the Apple Watch back to your iPhone and see if you can use your Apple Watch without any issues: Set up and pair Apple Watch with iPhone
Best regards.