Hello DCampy34.
Thank you for using Apple Support Communities. It sounds like you're experiencing issues with your Apple Watch not being recognized or losing connecting while working out with Apple Fitness+. If this is the case, we'd like to look into this issue with you.
You've already done a great job in troubleshooting this issue. You've toggled Bluetooth on and off, updated both your Apple Watch & iPhone, and also unpaired and re-paired your Apple Watch to your iPhone. You also mentioned that you're experiencing issues with your your Apple TV when using Apple Fitness+ with your Apple Watch. We do have a few more troubleshooting steps you can try. You can try to restart both your iPhone and Apple Watch to see if that helps.
Restart your iPhone
How to restart your Apple Watch
On your iPhone, try to play an Apple Music song or download an app from the App Store. If you're prompted to update or verify your Apple ID, please do so. The verification of your Apple ID is needed for Apple Fitness+.
For your Apple TV, you can try to install any pending updates. If you're already updated, try to restart it as well:
How to update your Apple TV
Restart Apple TV
If these steps do not help, please reach out to Apple Support for assistance. You can reach them by using the link below:
Get Support
Thank you for using Apple Support Communities.