Hello mailvijayprakash,
Thanks for reaching out in Apple Support Communities. We understand you're unable to update the software on an Apple Watch. We'll be happy to help.
To help troubleshoot this behavior, please perform each of these steps that's listed here and test to see if you can pair the Apple Watch to the iPhone:
- Verify that your iPhone is updated to the latest version of iOS 14.1: Update your iPhone, iPad, or iPod touch
- Ensure that the time is correct on your iPhone. If not, enable Automatic Date & Time in Settings > General > Date & Time: If you can’t change the time or time zone on your iPhone, iPad or iPod touch
- Reset the Apple Watch by pressing and holding the Digital Crown and tap "Reset."
- Check the iPhone Settings > General > iPhone Storage for an Apple Watch software update. If one is found here, swipe left to delete it.
- Temporarily disconnect (not unpair) any other Bluetooth accessories connected to the iPhone.
- Forget the Wi-Fi network the iPhone is connected to and then reconnect: How to forget a Wi-Fi network on your iPhone, iPad, iPod touch, or Mac
- Reset the network settings on your iPhone by going to: Settings > General > Reset > Reset Network Settings. Just to let you know this also resets Wi-Fi networks and passwords, cellular settings, and VPN and APN settings that you've used before.
- Try setting up the Apple Watch as new instead of from a backup: Set up your Apple Watch
If these steps do not help, we suggest to contact Apple Support to review this further. You can contact them through this link here: Get Support
Cheers.