Update continues to state installation paused. On charger, connected to Wi-Fi, and near iPhone.

Try updating from the watch itself;

Place the watch on the charger.

Make sure that your watch is connected to wifi.

On your watch, open the Settings app.

Tap General > Software Update.

Tap Install if a software update is available, then follow the onscreen instructions.

Got it to work. Needed to turn off/restart the watch after updating the phone to most recent update. This freed up the watch and the phone and I downloaded the watch update again and it went through.

Same problem. watch series 7, trying to install 8.4.1.

Trying to install update. Followed

instructions, it continues to say paused. Trying on watch - went to settings, hit install -nothing happens

Same issue for me. Watch is fully charged, on charger, connected to WiFi, and phone 2 feet away. Can't install from phone or directly on watch.

Is your phone updated to at least ios15 or higher?.

Yes - iPhone 12 Pro Max, iOS 15.2.1

We're up to ios15.3 now.