Hello brennar8,
If the Bluetooth connection on your Apple Watch is disconnecting unexpectedly, let’s first ensure your Apple Watch and paired iPhone are fully updated.
It looks like you’ve already reviewed the steps here: Update your Apple Watch
Go ahead and follow these steps to update your iPhone as well:
1. Back up your device using iCloud or your computer.
2. Plug your device into power and connect to the internet with Wi-Fi.
3. Go to Settings > General, then tap Software Update.
4. If you see two software update options available, choose the one that you want to install.
This information is located here: Update your iPhone, iPad, or iPod touch
If this continues after everything is fully updated, then we would recommend reaching out to Apple Support to get the best assistance going forward.
Get Support
Take care!