iwatch is bricked after Os3 Update

I have the apple Iwatch 42mm 1st gen and I just did an update a few days ago. Now after the update the Apple Watch displays a red "!" icon. I did a force restart etc. Still does not work. The watch was working perfectly fine before the update and there was no issue at all.

Now I took it to the service center and they are saying since its out of warranty I would have to pay INR -15,000rs(220$). They claim its a hardware issue. How can it be an hardware issue when the watch was working like new before the update. The update killed my watch, how is that my fault?

Is there anyone who can help me out. I have spoken to apple twice and they keep on saying the service center is right. How are they right. Watch was working and after the 1 hour update it went dead with a red "!" icon.