Hello sooners315,
Make sure you are not in AirPlane Mode by accident. Simplest way is in Control Panel (slide down from top right of iPhone screen and see if Airplane Mode is on.
Do the same on iWatch. Press button beneath the Digital Dial button to bring up Control Panel and check the AirPlane icon. Also check Theater Mode icon too.
Also make sure your watch and iPhone are connected to charger will doing update and don't remove till finished with update.
A few more things you can check with this Apple Support Page
Update your Apple Watch - Apple Support