Apple Watch pairing

From what is happening it sounds like the watch hasn't been unpaired properly from the last phone that it was paired too,I can only suggest that you take it back to Walmart because if it is still paired to another phone then it will never work with your phone until the activation locked is removed.

About Activation Lock on your Apple Watch - Apple Support

Start here;

Unpair and erase your Apple Watch - Apple Support

Then;

Set up and pair Apple Watch with iPhone - Apple Support

After updating what?,watch or phone?.

Tap on the link I posted in blue.

What happens when you tap on "start pairing"?.

Is the watch brand new or did you buy it from somebody?.It might be paired to another phone.