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This would be too funny if it wasn't so sad and true. This is exactly my experience with Apple support, beta reports and dealing with their engineers. I keep finding edge cases, report, report, wait, wait, then finally raise such a fuss that they finally collect more information, confirm I was right all along and push a semi-fix out in an upcoming release (think USB drives sleeping and ejecting, universal control, etc...) The universal control one took me years to get their attention on.
Or they just stop responding after you’ve sent all the information they requested - probably because they have no idea why it’s doing what it’s doing.
 
I was getting the error as well on my phone, so instead, I downloaded the beta directly from the watch and that worked. The phone then "prepared" the file as normal and it completed the upgrade. So try to download the beta on the AWU2.
 
Good to see that issue has been resolved. Always better to wait for some time before installing any beta.
 
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Not worry everyone, for Apple Support is here to the rescue. Here is the standard response:

1. This is not an issue because if it was, Apple Support would know about it before a customer does, because they talk to millions of customers an hour.
2. For issues like this, you'll need to re-install WatchOS and set-up the watch as new. If the issue persists, you'll need to install a profile and collect logs, with Mail logging enabled, just to be safe. After you collect the logs, you'll upload them to Apple to attach to the RTA.
3. Engineering will reply in 48 hr, confirming this is a known issue, there is no current fix, keep your device up to date, and no further troubleshooting will be provided.
It is A BETA. Do you know what a beta is ? No support granted for a beta. Use it at your own risk.
 
This is why I didn’t update the watches on beta at all this time. Their software track record for these OS’s has been horrid.

That’s one device that if it’s bricked it’s bricked!
 
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This problem is not limited to S9 and U2. S7 not updating either when prior S7 was running 11.2 already just fine. The update just fails to install. Reboots, etc do not fix it.
 
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