Can't Install Profile if Watch Has Passcode?

I've been trying to install watchOS 2 profile and keep getting a Device is Locked message on my iPhone. Do I have to turn off the passcode on the Watch in order to install the profile? If so, I'll lose all Apple Pay cards.

Thanks for reading. I was able to get it to work without turning off the passcode on the watch.

Can't Install Profile if Watch Has Passcode?
 
 
Q