Apple Watch Storage Full after Update

I purchased my Series 3 Apple Watch in September and it's worked really well...until.

Until it updated last week.

Since then I've been getting repeated messages daily the storage capacity is full. When I check on the iPhone app, it doesn't appear that the apps I have installed are anywhere close to full capacity. In fact, I've deleted most of the apps off of my watch to try and free up space.

It has really affected performance, and my watch is slow and unresponsive at times, it doesn't accurately record activity, etc.

Could this be a result of the update, and what, if anything, can I do to resolve it?

Thanks!