Can't set up apple watch

So I've had an Apple Watch series 3 for a while, I notice that after I don't use it for a few months it unpairs with my phone but my watch doesn't register that and just shows the data from when it was last paired. I got a new phone recently and found that I should factory reset the watch. I did that and now when I try to set up the watch, I have to install the watch's software update before I continue setting up or else it cancels it. When I try to install it, it claims that it can't search for updates because I'm not connected to the internet, when I'm connected to both wifi and cellular data. I'm on IOS 15.2 right now and I don't know what the watch was on before.

Can't set up apple watch
 
 
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