Why is my Apple Watch not accepting my Apple ID?

My iWatch series 4 is asking for my Apple ID password after having to change the password recently. I can draw my password on the iWatch screen, and select the proper characters using the crown button. The password is not getting verified. I cannot update the Apple ID password on my iphone's Watch app. Why am I being asked to enter my Apple ID password on my iWatch and how can I update the password on my iWatch correctly?

[Re-Titled by Moderator]