Hello there,
I understand you are having difficulty updating your Apple Watch. I am an Apple Watch and iPhone user myself, and I'd like to help.
If you haven't already, I suggest reviewing: Update your Apple Watch - Apple Support
Assuming your Apple Watch is Series 4 or later (which it appears it is), ensure you are following these important instructions:
- Make sure that your iPhone is updated to the latest version of iOS.
- Make sure that your Apple Watch is at least 50 percent charged.
- Make sure that your iPhone is connected to Wi-Fi.
Similar to the iPhone, it is important to ensure a greater than 50% charge on the Apple Watch before attempting an update. It is also important to keep the device charging at all times during the update and any restarts that occur during the update.
It may also help to clarify what you mean when you say "Watch stopped receiving connection to iPhone" as understanding and correcting this may resolve your update issue automatically.