WatchOS 11.0 Update Stuck at 'Preparing'

My WatchOS 11 update got stuck at the preparing stage indefinitely.

I deleted the package from storage multiple times and tried to reinstall it.

However, it still doesn't work.

This seems to be a common issue reported by the community for quite some time. Last time, I had to reset my Watch to factory settings, but I really don't want to do that again.

Does anyone else have a similar issue? How can I resolve it?