HiI have read that unpairing and repairing will fix this. I am doing that at the moment. Will update thread with results
UPDATE - I can confirm this fix. Unpair from apple watch app on iPhone. When you repair, choose to restore from older backup that was made on 1.1 and both problems are fixed.
Yeah that fixed it for me too holding them both down to reboot.Yeah I think it did require a hard restart at some point. Just hold down the contacts button and the crown until it restarts.