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There was several people with this and they said they rebooted the watch and it completed.
 
My phone can't seem to verify the update. I have tried this on LTE and Wi-Fi, so it's not related to the Verizon outage...

I had that problem. They had me unpair and pair again. Downloading the install is taking two hours :0
 
Had the same problem, but rebooting the watch and trying again got me past "verifying." It's installing now.
 
It's strange that Apple is having such a hard time pushing the watchOS update, when I was able to download iOS 9 in no time at all.

(FWIW I am also in Verify hell)
 
Good lord, yeah- already been 20 minutes, still reading 1hr to download the update.. At least it's distracting me from trying to track my new 6S+...
 
Stuck at verifying, then got a message how it was unable to update because of being unable to connect to internet. Have already restarted both the watch and the iPhone.
 
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