what I’ve learned so far…
Updating iPhone to 17.4.1 prompted an auto update of the watch to 10.4. That got stuck at around 2/3 into “preparing”, and caused the watch battery to drain quickly. At that point I wasn’t even aware that my watch was trying to install an update.
After visiting this thread I used the workaround of disabling the auto-update function on the watch app on iPhone and deleting the pending 10.4 from my watch.
Yesterday I contacted Apple, who ran some diagnostics on my watch and told me the problem was with poor communication between watch and phone. They talked me through uncoupling the watch and phone, reconnecting them, and then installing the 10.4 update on the watch.
My watch and phone are both now running on up to date software, and (so far) the battery life of my watch seems normal. Apple gave me a link to use so I can pick up the support again if I encounter any problems.
If you have AppleCare for your watch I recommend contacting Apple for help. They did a cool screen-sharing thing on my phone to show me what to do whilst they talked to me.
Hope that helps anyone still having problems.