Cannot set Apple Watch passcode (grayed out)

I set my watch up as instructed by Apple. During the process it ask for me to setup a passcode for my watch, which I did. After the setup is complete I tried to add my Apple Pay cards to my watch but it said I’d have to enable a passcode on my watch. I went to passcode settings and they are all greyed out except for the Wrist Detection setting which is turned on. I searched the apple help forum and found a list with the same issue. It said to completely erase/reset the watch and run setup again. I did that and still have the same problem.