iphone says update when pairing watch

Can you provide siome more details? What model and iOS version is your iPhone? What series and watchOS is you Apple watch?

What model of phone is it and what version of ios is it running?

What model of watch is it and what version of WatchOS is it running?.

What troubleshooting steps have you tried?.

What errror messages are you receiving?.

Has this watch ever been paired to another phone?