I am having the same issue!! Downloaded the latest update last week, wake up to the red exclamation point . Called Apple support, tried restarting it, no avail. Spoke with another lady (assuming it was a supervisor) she told me to send it in and they would send me a replacement. I sent it in and received an email saying that it was going to cost me $199 to repair!!! It says that there was a problem with the hardware. There was NOTHING wrong with my iwatch before I downloaded the software update!!! I called and spoke with someone and told him “if I knew this was going to happen I wouldn’t have downloaded the update!!” He told me this would’ve happened even if I didn’t do the update. I’m waiting for them to find out what the hardware problem was. I’m so stinking upset!!!!! 😡😡🤬🤬🤬🤬 WTH???!!!