Fixed “cant update not connected to the internet” AFTER combing the internet for two days trying to find a fix I ended up figuring it out myself. I watched every internet video and went to every forum and tried all of the stupid ideas like turning on and off airplane mode/Bluetooth/different WIFI/resetting network settings/reboots…Etc. The answer is: You must have someone who already has an Apple Watch running 8.0.1 pair the watch to their phone. They should simply add the watch under their Apple Watch app, the update will download and install.
The problem with the update is that unless you already have a watch set up in the watch app there is no way to download the latest watchOS to the phone. I was trying to set this watch up for a friend and no matter what I did I couldn’t get it to do anything because it was constantly saying not connected to the internet. I tried an iPhone 6, 7, and 9 to no avail. Then I tried pairing it to my iPhone 13 pro on a whim as a “second” watch and boom, got the message that it needed to be updated and the update started and ran no problem. The other phones I had tried didn't currently have watches paired to them so the advanced settings in the watch app wouldn't appear.
Apple Watch 3