Not especially helpful. We're not trying to upgrade to watchOS 9, but to 8.7.1 which IS fully supported on the S3. (it was specifically released FOR the S3!!).
The reason this is impacting people is that under iOS 16, you cannot pair a watch WITHOUT applying the update. So S3 watches are essentially bricked until Apple addresses the issue. I can pair with a phone running iOS 15.7, but not with a phone running iOS 16 due to the required update as part of pairing.
This is not entirely a storage issue. I have a cellular S3, so 16gb. I've freshly wiped it. Watch is currently using 5 out of 16gb. Please don't try to tell me that 11gb free is not enough to apply the 600mb 8.7.1 patch. This is a broken patch from Apple which is being flagged as mandatory on iOS 16. This is a problem.