How do I free up space on my watch so I can upgrade
How do I delete apps to free up space to install update
Apple Watch Series 3, watchOS 7
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Unpair your Apple Watch via the Watch app on your iPhone.
Then Re-pair your Apple Watch,this frees up a surprisingly large amount of storage space.And without any loss of data.
Or go here;
If you don’t have enough space to update your Apple Watch – Apple Support