pairing apple watch is not proceeding as the update failed since not connected to net as prompted but iam connected

Hi,

First Connect your iPhone & Watch to power/charger and keep them that way throughout the entire process.

Also, please make sure your iPhone has the latest iOS software already installed prior to attempting to update the Watch.

1. Reset Network Settings on iPhone. Settings > General > Transfer or Reset iPhone > Reset > Reset Network Settings. You will need to connect back to your Wi-Fi network after the device restarts.
2. While iPhone is restarting, erase all content and settings of the Watch. Press and hold the Side button until you see “Power off” on the screen.
3. ONCE that appears on the screen, do not do anything except release the side button, and instead, press and hold the Digital Crown until you see Reset > Erase all Content & Settings. This may take a few minutes.
4. Once the Watch is done & restarts, you should see the pairing screen on the Watch, and “Start Pairing” on the Watch app.
5. Select Start Pairing on the Watch app > select Pair Manually instead vs placing Watch in camera view to pair the watch.
6. you should see your watch name on the Watch app > Click on it > look for the 6 digit code provided on your Watch and then enter that code on your iPhone.
7. Proceed with update > Start Update > Press Continue. The update should start installing to the Watch.
8. When setting up, don’t restore from backup. Select Set Up as New Apple Watch.

hope that helps

https://support.apple.com/en-us/HT211801

https://support.apple.com/en-us/HT204567?

See this;

https://www.wipelock.com/phone-tips/apple-watch-unable-check-update/