Apple Watch update
I have received a renewed Apple Watch and when taken out of box and trying to set it up, it tells me the Watch needs an update. How do you update it when you cannot get it set up?
When you powered the watch on and placed it near your iPhone, what screen came up? It should have opened to a screen asking you to start the process of pairing on your iPhone. It's hard to know what you got with a refurbished watch from Amazon.
See if this helps you --> Set up and pair your Apple Watch with iPhone - Apple Support (CA)