My iwatch says "Too Many passcode attempts Reset Apple watch and pair again", but reset isn't working. Stuck on that message.

I have tried to reset it on the iwatch by pressing and holding the side button. It looks like it turns off and the apple comes back but then it goes directly to the "Too Many Passcode Attempts screen and no where else. I also couldn't do it on my iphone Iwatch app. The app was stuck on "Update Required" and I can't go to any other screen? I have now unpaired/erased the iwatch via Find My devices, but still same message on phone watch app and iwatch.