Watch no longer shows contacts

Since iOS 10.0.2 update (23rd Sept) my Apple Watch has lost all contacts info.

I have restarted apple watch,

restarted iPhone,

checked watch app on iPhone has mirror iPhone for apps,

reset sync data on iPhone in watch app,

restarted both iPhone and watch again,

unpaired watch and iPhone,

paired watch and iPhone,

reset sync data on iPhone in watch app,

restarted both iPhone and watch again,

erased watch,

paired watch and iPhone....

and yet contacts in messages and phone app are empty!