Problems with updating and pairing an Apple Watch

Hello everyone, I have a problem with my Apple Watch. The watch was previously used, unpaired from the phone it was connected to, and reset to factory settings. After sitting unused for some time, it needed to be paired with another phone. The watch pairs successfully, the initial setup steps are completed, and then it shows that an update is required, prompting the download of the appropriate software. When the software is downloaded and the installation is initiated, an error appears, which I am sending as a photo.

If "Close" is pressed, it simply exits the app and the update process; if "Open App" is pressed, it just reloads the app, and once you tap to update again, the same error appears, looping endlessly. The watch and the phone are clearly connected to the internet, so that is definitely not the issue even though the message suggests it is.

Does anyone know what might be causing this problem?

Thank you to everyone who responds.

Boris.