I don’t know what else I can delete from my watch to download the update. I tried everything even resetting it back to factory settings.
How do I update a gen3 Apple Watch?
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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 this;
If you don’t have enough space to update your Apple Watch – Apple Support