Apple watch series 3 can't update, can't set up and pair without update. Is it unofficially DOA?

Just purchased refurbished Apple Watch Series 3 from Amazon. It has been re-set to factory settings. As I attempt to set it up, I am forced to get a software update to watch OS 8.7.1. This takes two hours, at the conclusion of "Downloading to Watch" process, I get a message that the update can't complete because I have no internet connection. (I have gig speed fiber optic connection working just fine and WiFi is enabled on my new iPhone 13 mini with iOS 16. Can't enable WiFi on watch until it's set up.) I've tried this twice with same result. The watch is worthless to me if I can't set it up and pair it with my phone. Has Apple made Series 3 watches obsolete by creating a mandatory update that's incompatible with them? Any suggestions/workarounds?