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I was having a similar issue after upgrading to iPhone X and a new Apple Watch 3 LTE. The watch wasn't connecting to WiFi. My iPhone X was using the password info stored in iCloud and I never had to re-join the network upon setting up my new iPhone (restored from the backup of my iPhone 7+). I had to forget the network and re-join. Now the watch is connecting to WiFi fine

I read somewhere that you have to be wearing the watch when joining the network for the first time for iCloud to pass the WiFi info over to the watch.
Tried that, no luck.
 
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Having your exact wifi issue now with my 7+ with the upgrade to 11.2. :(
Just tried everything on here and no joy....

Update:
Spent a bit on the phone with an Apple rep.
We ended up having to unpair my watch, repair it with my iPhone, then setting up as new.
During this time I kept my iPhone linked to the 2.4 wifi band.
The repair and update took a couple of hours (kept hanging during the initial verification stage).
Once complete I have the wifi connection back and active on the watch.

So for now, my watch is once again accessing wifi properly.
 
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