Same here. iPhone X with GM. Watch 3 with latest beta. When I try to install with the watch on the charger, it fails right away stating it can’t go online, but in reality it’s the watch that needs to be unlocked. Bad start. But then it downloads the 180MB update and then complains there’s no internet. My gut feeling from the first incorrect error message is that the error is being miss interpreted and the real error is lack of free storage. The Watch 3 only has 8GB of storage, and it has only 4GB of usable storage with v7 (from 4.5 with watchOS 6). After a clean restore and nothing installed, I only have 3GB free - 1GB of “Others” is gone right after the clean install. Beta versions never installed cleanly because they would download the update and then complain it would need 2.5GB free, so I’ve always had to unpair from my main account (I have 800MB free now, with barely nothing installed, because health is using 600-800MB, and iTunes Match or Music is consuming another 600-800MB just for metadata (album cover?). So unpair, do a clean reset, pair with another device with another iCloud id with no data, then get those 3GB free, then update, unpair, and restore my account. This takes 3 to 6 hours depending on how long it takes to download the update (30-40 minutes before) and to “prepare” (more than an hour).
This may not be relevant at all. Maybe the GM doesn’t need to reset the whole OS system and does not need 2.5GB free and maybe the message that appears right after the download, and before the preparing phase, is really some kind of activation internet connectivity issue, and not the not enough storage. I don’t know. I’m afraid of repeating the whole process at the moment. I don’t want to lose my health data nor to interrupt my >500 day perfect ring streak.
Please tell me what watch model you have, for comparison. Thanks.